Elm Tree Inc

question 58

Multiple Choice

Elm Tree Inc.has a December 31 year end.On October 15,the auditor evaluated and tested Elm Tree's internal control procedures over the sales recording process and finds the controls to be effective.At a minimum,the auditor's year-end procedures for testing internal control procedures must include

• A)confirmations of year-end accounts that were examined on October 15.
• B)test the client's internal control procedures from October 15 through the year end.
• C)tests of compliance with internal control for a random sample of transactions throughout the audit period.
• D)a comparison of the responses to the auditor's internal control questionnaire with a detailed flowchart of control procedures at year end.

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Definitions:

Cognitive Components

The mental processes involved in perception, memory, judgment, and reasoning, which are fundamental to understanding and responding to the environment.

Affective Components

Refers to the emotional or feeling segments of an attitude, which influence how an individual feels about an object, person, or situation.

Reference Group's Attitude

The collective opinions, beliefs, or norms of a group that an individual identifies with or aspires to join, influencing their behavior and perspectives.

Situational Constraints

External factors or conditions that limit or influence an individual's actions or behavior in a given context.