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The PCAOB's Auditing Standard No

question 109

Essay

The PCAOB's Auditing Standard No.5 specifically requires auditors to understand transaction flows in designing their test of controls.What steps does this entail?


Definitions:

Employment Duration

The length of time an individual is employed in a specific job or with a particular company.

Softening Bad News

This involves delivering unfavorable information in a way that minimizes upset or harm, often by framing the message with positive or neutral statements.

Suggesting a Compromise

Offering a middle-ground solution in a dispute or disagreement that attempts to meet the needs or interests of all parties involved.

Passive-Voice Verbs

A grammatical voice where the subject of the sentence is acted upon by the verb.

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