Which of the Following Statements Is Correct Concerning the Understanding

question 62

Multiple Choice

Which of the following statements is correct concerning the understanding of internal control needed by auditors?

• A)The auditors must understand the information system,not the accounting system.
• B)The auditors must understand monitoring and all preliminary accounting controls.
• C)The auditors must have a sufficient understanding to assess the risks of material misstatement.
• D)The auditors must understand the control environment,risk assessment,and all control activities.

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Definitions:

Target Memory

The specific memories an individual aims to recall or improve recall for.

Long-Term Memory

The component of the memory system capable of storing vast amounts of information for periods ranging from minutes to a lifetime.

Appropriate Cue

A stimulus or signal that is relevant and leads to increased efficiency in cognitive processing or behavioral response.

Recall

The mental process of retrieving information or events from the past without the aid of explicit cues.