Which of the Following Is True About the Auditors' Consideration

question 54

Multiple Choice

Which of the following is true about the auditors' consideration of internal control in a financial statement audit?

• A)The auditors must assess control risk at a level lower than the maximum.
• B)The auditors must prepare a flowchart description of internal control for their working papers.
• C)The auditors must obtain an understanding of the steps in processing major types of transactions.
• D)The auditors must perform tests of controls.

---

Definitions:

Morphological Phylogeny

The study of the evolutionary relationships among species based on their physical characteristics and structural features.

Marsupials

Mammals characterized by giving birth to partially developed offspring that complete their development in an external pouch.

Greenhouse Effect

A natural process where certain gases in Earth's atmosphere trap heat, keeping the planet warmer than it would be otherwise.

Solar Radiation

The electromagnetic energy emitted by the sun, including visible light, ultraviolet light, and infrared energy, which is a key driver of Earth's climate and ecosystem.