Which of the Following Factors Is Most Likely to Affect

question 66

Multiple Choice

Which of the following factors is most likely to affect the extent of the documentation of the auditor's understanding of a client's system of internal controls?

• A)The industry and the business and regulatory environments in which the client operates.
• B)The degree to which information technology is used in the accounting function.
• C)The relationship between management, the board of directors, and external stakeholders.
• D)The degree to which the auditor intends to use internal audit personnel to perform substantive tests.

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Definitions:

Six Sigma

A set of techniques and tools for process improvement, aimed at reducing defects and improving quality by using a data-driven approach.

Tolerance Range

The range within which a particular environmental factor is permissible for the survival of an organism.

Defects

Imperfections, faults, or flaws in a product or service that detract from its intended quality or functionality.

Continuous Process

A production process that operates without interruption, as opposed to discrete manufacturing processes that are set up and stopped in between the production of different products.