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:

Quadratic

Relates to an algebraic expression of the second degree, typically in the form of \(ax^2 + bx + c = 0\), where \(a\), \(b\), and \(c\) are constants.

Scatterplot

A graph that depicts the correlation between two quantitative variables by displaying data points on a Cartesian plane.

Linear Model

A mathematical representation that describes the relationship between one or more independent variables and a dependent variable.

Diameters

A straight line passing from side to side through the center of a body or figure, especially a circle or sphere, representing the longest distance across it.