Which of the Following Is Not a Reason Why an Auditor

question 95

Multiple Choice

Which of the following is not a reason why an auditor obtains an understanding of internal controls?

• A)Understanding the entity's internal control is a requirement of professional auditing standards.
• B)The auditor must use the information to assess the risk of material misstatements arising from the lack of internal control.
• C)It is the primary basis for the audit report.
• D)It assists the auditor in designing the nature,timing,and extent of further audit procedures.

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Definitions:

Whisk Ferns

Primitive, vascular plants belonging to the genus Psilotum, characterized by their simple, whisk-like appearance, lacking true leaves and roots.

Bryophyta

Bryophyta is a division of non-vascular plants that includes mosses, liverworts, and hornworts, characterized by a life cycle dominated by the gametophyte stage.

Club Mosses

Ancient group of non-flowering plants belonging to the division Lycophyta, characterized by their small, scale-like leaves and production of spores.

Pteridophyta

Pteridophyta is a division of non-flowering plants also known as ferns and their allies, characterized by having vascular tissues and reproducing through spores.