SAS No94 Requires That Independent Auditors Be Able to

question 61

Multiple Choice

SAS No.94 requires that independent auditors be able to

• A)draw computerized flowcharts.
• B)prepare flowcharts and decision tables before conducting an audit.
• C)understand a client's system of internal controls before conducting an audit.
• D)prepare and understand any type of system documentation.

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Definitions:

Average Tax Rate

The fraction of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the total income.

Incentive To Work

Factors, such as financial rewards or benefits, that motivate individuals to engage in employment.

Social Security Tax

A tax imposed by the government to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Personal Income Tax

A tax levied on individuals or households based on their income, including wages, dividends, and interest.