After Documenting the Client's Prescribed Internal Control,the Auditors Will Often

question 94

Multiple Choice

After documenting the client's prescribed internal control,the auditors will often perform a walk-through of each transaction cycle.An objective of a walk-through is to:

• A)Verify that the controls have been implemented (placed in operation).
• B)Replace tests of controls.
• C)Evaluate the major strengths and weaknesses in the client's internal control.
• D)Identify weaknesses to be communicated to management in the management letter.

---

Definitions:

Conditioned on Performance

Conditioned on performance describes a contractual clause stating certain obligations that must be met or actions that must be performed for the contract to remain valid.

Warehouse

is a large building where goods are stored before they are distributed, sold, or used.

Fully Executed

A contract or agreement that has been completely signed by all parties involved and all the terms are fully met.

Rescinded by Agreement

The mutual decision of parties involved in a contract to cancel or nullify the agreement.