An Auditor Concludes That the Internal Controls Are Not Operating

question 8

Multiple Choice

An auditor concludes that the internal controls are not operating effectively when in fact they are. This most likely would result in:

• A) a qualified opinion on the ICFR.
• B) additional substantive testing.
• C) additional scope requirements.
• D) All of the above.

Discuss the purposes of performance evaluation and strategies for minimizing legal challenges.

Identify effective methods and practices for conducting evaluation interviews and developing objectives within performance evaluation systems.

Understand the four basic considerations for establishing performance standards.

Understand the importance of evaluation interviews and guidelines for their effectiveness.

---

Definitions:

Mass Manufacturing

The production of large quantities of standardized products, often utilizing assembly line technology to achieve efficiency and cost-effectiveness.

World Economy

The global network of economic activities, including the production, distribution, and consumption of goods and services, across national borders.

Nonunion Representation

Forms of employee representation in the workplace other than labor unions, such as works councils or employee advocacy groups, that negotiate with employers on behalf of workers.

Committees

Groups of persons appointed or elected to consider, investigate, and report on or act regarding specific matters or issues.