The Main Goal of Auditing Internal Control Is

question 44

Multiple Choice

The main goal of auditing internal control is

• A) To allow the auditor to fix any internal control deficiencies.
• B) To form an opinion on the ability of internal controls to prevent fraud.
• C) To assure management that internal control is preventing all material misstatements on the financial statements.
• D) To evaluate the effectiveness of controls over all relevant financial statement disclosures in the financial statements.

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Definitions:

Inverse Supply

A representation of the relationship where the price of a good influences the quantity supplied, typically showing higher quantities supplied at higher prices.

Tax

Compulsory contributions to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.

Demand Function

A mathematical equation that describes the relationship between the quantity of a good consumers are willing to buy and the good’s price, holding other factors constant.

Supply Function

A mathematical expression that shows the relationship between the quantity of a good supplied by producers and the price of the good.