A Systems Flowchart

question 35

Multiple Choice

A systems flowchart:

• A)Can help an auditor understand an organization's business processes as part of the third generic step of a financial statement audit.
• B)Can help an auditor verify all five financial statement assertions as part of the fourth generic step of a financial statement audit.
• C)Both can help an auditor understand an organization's business processes as part of the third generic step of a financial statement audit and can help an auditor verify all five financial statement assertions as part of the fourth generic step of a financial statement audit.
• D)Neither can help an auditor understand an organization's business processes as part of the third generic step of a financial statement audit nor can help an auditor verify all five financial statement assertions as part of the fourth generic step of a financial statement audit.

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Definitions:

Negative Impact

The adverse outcomes or effects that an action, decision, or event can have on an individual, community, environment, or organization.

Corporate Social Responsibility (CSR)

A company framework that includes social and environmental considerations within its operational activities and engagements with stakeholder groups.

Quantitative Measurements

The process of determining the quantity, amount, or range of something as established by numerical values.

Qualitative Measurements

The assessment of characteristics, attributes, or properties by means of subjective judgments or observations rather than by numerical measurements.