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:

Achievement

That which is attained by one’s efforts and presumed to be made possible by one’s abilities.

Performance

The act or process of carrying out or accomplishing an action, task, or function.

Recall

The act of retrieving information or memories from one's past, often with a specific focus on details.

Rewards

Incentives or positive feedback given to reinforce desirable behavior, promoting learning and motivation.