When Performing an Audit of Internal Control Under PCAOB Requirements

question 50

Multiple Choice

When performing an audit of internal control under PCAOB requirements, auditors evaluate control: $$\begin{array} { | l | c | c | } \hline & \text { Design Effectiveness } & \text { Operating Effectiveness } \\\hline \text { A. } & \text { Yes } & \text { Yes } \\\hline \text { B. } & \text { Yes } & \text { No } \\\hline \text { C. } & \text { No } & \text { Yes } \\\hline \text { D. } & \text { No } & \text { No } \\\hline\end{array}$$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Residence

A place where an individual lives or has their home.

Home Equity

The portion of a homeowner's property value that exceeds the outstanding balance of all liens on the property.

Preferential Payment

A payment made by a debtor to a creditor before a bankruptcy filing that gives the creditor more than it would receive in the debtor's bankruptcy.

Business Partner

An individual or entity that enters into a business relationship with another to pursue mutual goals and interests, often sharing profits, losses, and control.