Which of the Following Is a Reason Why an Auditor

question 16

Multiple Choice

Which of the following is a reason why an auditor needs an understanding of internal controls?

• A)To provide individual comments on internal control non-compliance.
• B)To become comfortable that the client will pay its audit bills.
• C)To assess materiality.
• D)To assess the risk of possible misstatements in the financial statements.

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Definitions:

Critical Age

A specific period in development during which an individual is particularly receptive to acquiring certain skills, such as language, often hypothesized to end at puberty.

Intellectual Age

A measure of a child's mental abilities expressed in terms of the average abilities of children at a certain chronological age.

Metacognitive Abilities

The awareness and understanding of one’s own thought processes, allowing individuals to regulate their learning.

Middle Years

A period in human life, often considered as middle adulthood, encompassing ages approximately 40 to 65, characterized by established life structures and potential mid-life transitions.