In Obtaining an Understanding of an Entity's Internal Control in a Financial

question 88

Multiple Choice

In obtaining an understanding of an entity's internal control in a financial statement audit of a nonpublic company,an auditor is not obligated to

• A) Determine whether the control activities have been placed in operation.
• B) Perform procedures to understand the design of the internal control policies.
• C) Document the understanding of the entity's internal control components.
• D) Search for significant deficiencies in the operation of the internal control.

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Definitions:

Need For Achievement

A personal drive to excel or succeed in tasks, often indicative of motivation levels and goal-oriented behavior.

Group Responsibilities

The duties and tasks that are collectively held by members within a team or organization.

Two-Factor Theory

Identifies job context as the source of job dissatisfaction and job content as the source of job satisfaction.

Job Context

The environmental and situational factors surrounding a job, including physical conditions, work tasks, and the social and organizational setting, which affect an employee's performance and satisfaction.