Which of the Following Is True About the Auditors' Consideration

question 54

Multiple Choice

Which of the following is true about the auditors' consideration of internal control in a financial statement audit?

• A)The auditors must assess control risk at a level lower than the maximum.
• B)The auditors must prepare a flowchart description of internal control for their working papers.
• C)The auditors must obtain an understanding of the steps in processing major types of transactions.
• D)The auditors must perform tests of controls.

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Definitions:

Message Source

The originator or sender of a communication message, who initiates the message to be received by an audience.

Space

The physical or virtual extent in which objects and events occur and have relative position and direction.

Verbal Messages

Information or feelings conveyed through the spoken word as opposed to non-verbal ways of communication.

Active Listening

The fully concentrated and engaged process of hearing, understanding, remembering, and responding to what is being said.