An Auditor Needs to Understand a Company's Internal Controls in Order

question 52

True/False

An auditor needs to understand a company's internal controls in order to anticipate the types of material misstatements that may occur.

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Definitions:

Voices

The sounds produced by humans and animals using their vocal cords, especially when speaking or singing.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, which develops in infants around the age of 8 to 12 months.

Representational Abilities

The cognitive ability to use symbols, language, and pictures to represent and understand the world.

Familiar Objects

Items or things that are well known to a person and easily recognized.