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:

Globalism

The attitude or policy of placing the interests of the entire world above those of individual nations.

McDonaldization

A term used by sociologist George Ritzer to describe the process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as of the rest of the world.

Predictability

The ability to foretell future events or behaviors based on patterns or known information.

Standardization

The process of developing and implementing technical standards to ensure consistency, safety, and interoperability of products and services.