Which of the Following Is Not a Reason That the Auditor

question 20

Multiple Choice

Which of the following is not a reason that the auditor must gain an understanding of the client's internal control system?

• A)Better understand the client,its risks,and how it manages those risks.
• B)Assess control risk and identify the types of financial statement misstatements that are most likely to occur.
• C)Plan direct tests of account balances to determine if misstatements have occurred.
• D)All are reasons why auditors must gain an understanding of the client's internal control system.

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Definitions:

NAFTA

The North American Free Trade Agreement, a treaty among the United States, Canada, and Mexico to reduce trading barriers and establish a trilateral trade bloc in North America.

Customer Needs

The requirements or desires that consumers expect products or services to fulfill.

Strategy Formulation

The method of determining the course of an organization and deciding on the distribution of its resources to follow that plan.