SAS 109 Requires Auditors Obtain an Understanding of an Organization's

question 123

Essay

SAS 109 requires auditors obtain an understanding of an organization's control environment. Discuss two techniques that may be used to obtain such understanding.

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Definitions:

External Adjustment

The process by which an economy corrects imbalances in its balance of payments, through changes in exchange rates, demand, and supply in foreign exchange markets.

Investment Funds

Pools of capital that are allocated to various securities or assets, managed by professional investment managers, intended to generate returns for investors.

Economic Growth

The increase in the total output of goods and services in an economy over time, often measured as the percentage increase in real gross domestic product (GDP).