As Part of Gaining an Initial Understanding of Internal Control,an

question 86

Multiple Choice

As part of gaining an initial understanding of internal control,an auditor is required to do all of the following except:

• A) Consider factors that affect the risk of material misstatement.
• B) Ascertain whether internal control policies and procedures have been placed in operation.
• C) Identify the types of potential misstatements that can occur.
• D) Obtain knowledge about the operating effectiveness of the internal control.

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Definitions:

Drumlins

streamlined, elongated hills formed by glacial action, made of till and shaped like inverted spoons.

Sediment

Particles of rock, minerals, or biological materials that have been transported and deposited by wind, water, or ice, often forming layers in bodies of water.

Glacier

A large mass of ice, formed from compacted layers of snow, that moves slowly over land.

Erosion

The process by which the surface of the Earth is worn away by the action of water, wind, or ice.