Which of the Following Statements Is Correct Concerning the Understanding

question 62

Multiple Choice

Which of the following statements is correct concerning the understanding of internal control needed by auditors?

• A)The auditors must understand the information system,not the accounting system.
• B)The auditors must understand monitoring and all preliminary accounting controls.
• C)The auditors must have a sufficient understanding to assess the risks of material misstatement.
• D)The auditors must understand the control environment,risk assessment,and all control activities.

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Definitions:

Vegetarian Diet

A dietary choice abstaining from consuming meat, fish, and sometimes, animal by-products, focusing on plants for food.

Americans

residents or citizens of the United States of America.

Meatless Diet

A diet that excludes all types of meat, including beef, poultry, and fish, often adopted for health, ethical, or environmental reasons.

Animal Products

Items derived from parts of animals, such as meat, dairy, and wool, used for food, clothing, or other purposes.