The Auditor Must Understand Internal Control Before Assessing Inherent Risk

question 28

True/False

The auditor must understand internal control before assessing inherent risk.

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Definitions:

Personal Property

Assets that are movable and not fixed permanently to one location, such as furniture, vehicles, and stocks, as opposed to real estate or land.

Ownership Rights

Legal rights and claims that one has over property or assets, allowing them to use, manage, and dispose of them as they see fit.

Personal Property

Assets that are movable and not permanently attached to one location, such as furniture or vehicles.

Real Property

Land and anything permanently affixed to it, such as buildings, fences, and those things attached to the buildings.