In the Audit of Financial Statements,an Auditor's Primary Consideration Regarding

question 17

Multiple Choice

In the audit of financial statements,an auditor's primary consideration regarding an internal control policy or procedure is whether the policy or procedure

• A) Reflects management's philosophy and operating style.
• B) Affects management's financial statement assertions.
• C) Provides adequate safeguards over access to assets.
• D) Enhances management's decision-making processes.

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Definitions:

Encoding

The initial learning of information; the process by which information is converted into a form that can be stored in memory.

Storage

The action or method of keeping something for future use, or a space where items are kept.

Hands-Free Cellular

Devices or systems that allow for the use of cellular phones without the need to physically hold the phone, often using Bluetooth technology.

Text Messaging

The act of composing and sending brief electronic messages between two or more mobile devices or fixed or portable devices over a phone network.