An Auditor's Primary Consideration Regarding an Entity's Internal Controls Is

question 45

Multiple Choice

An auditor's primary consideration regarding an entity's internal controls is whether the policies and procedures

• A) Affect the financial statement assertions.
• B) Prevent management override.
• C) Relate to the control environment.
• D) Reflect management's philosophy and operating style.

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Definitions:

Procurement

The process of obtaining goods or services, typically for business purposes, which includes selecting suppliers, negotiating contracts, and strategic sourcing.

MRP

Material Requirements Planning, a system for planning production and inventory control, ensuring materials and products are available for production and delivery.

Time Period

Refers to a specific duration or interval in which certain events or processes take place.