Which of the Following Is Not True with Respect to the Use

question 70

Multiple Choice

Which of the following is not true with respect to the use of systems techniques by auditors?

• A) Systems techniques assist the auditor in evaluating a client's internal control.
• B) Systems techniques replace audit working papers.
• C) Auditors rely on systems techniques to assist with compliance testing.
• D) Auditors use systems techniques as part of their documentation for their audit working papers.

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Definitions:

RMBCA

The Revised Model Business Corporation Act, which serves as a guide for states in drafting their corporation statutes.

Organizational Meeting

An organizational meeting is the initial meeting held by the incorporators or initial directors of a corporation to complete the formation of the business and to adopt bylaws.

Corporate Veil

A legal concept that separates the identity of a corporation from its shareholders, protecting them from being personally liable for the company’s debts and obligations.

Closely Held Corporations

Companies whose shares are owned by a small group of individuals or families, often with restricted stock sales.