What Does the Underlying Assumption of Reasonable Assurance Regarding Implementation

question 5

Multiple Choice

What does the underlying assumption of reasonable assurance regarding implementation of internal control mean?

• A)Auditor's are reasonably assured that fraud has not occurred in the period.
• B)Auditor's are reasonably assured that employee carelessness can weaken an internal control structure.
• C)Implementation of the control procedure should not have a significant adverse effect on efficiency or profitability.
• D)Management assertions about control effectiveness should provide auditors with reasonable assurance.

---

Definitions:

Distressed

Experiencing stress, anxiety, or pain; a state of emotional or physical turmoil.

Identical Twins

Twins resulting from the division of a single fertilized egg, sharing the same genetic material.

Alzheimer's Disease

A progressive neurological disorder characterized by memory loss, language deterioration, and impaired ability to mentally manipulate visual information, leading to the decline in cognitive function.

Leisure Activity

Voluntary activities undertaken for enjoyment, amusement, or pleasure, often during one's free time.