Auditors Consider Internal Control During the Audit of a Nonpublic

question 5

Multiple Choice

Auditors consider internal control during the audit of a nonpublic company:

• A) For all the same purposes as on an audit of a public company.
• B) To identify areas of risk and help to plan the financial statement audit.
• C) To help to plan the financial statement audit and issue an opinion on effectiveness.
• D) Only if they are sure it will be helpful when performing the financial statement audit.

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Definitions:

Rude

Displaying a lack of respect or consideration for others through impolite actions or words.

Polychronic

Referring to cultures or individuals that prefer to engage in multiple activities simultaneously and value the involvement in several events over strict adherence to schedules.

Monochronic

A perception of time as linear and segmented into fixed, sequential units, where tasks are approached one at a time.

Informal

A term describing actions, relations, or communication that occur without official or formal structures or procedures.