To Understand the Relevant Internal Controls of the Company,the Auditor

question 85

Multiple Choice

To understand the relevant internal controls of the company,the auditor should understand the following areas of the company:

• A)the management environment
• B)the risk assessment process
• C)the information system including the business processes relevant for financial reporting
• D)how the company communicates internal control roles and responsibilities
• E)how the company has controlled risks arising from IT
• F)both A and B
• G)both B and C
• H)both C and D

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Definitions:

Regio-

A prefix in chemistry indicating the region or position in a molecule where a certain reaction takes place or where a particular substituent is located.

Stereochemical

Pertains to the study of the three-dimensional arrangement of atoms within molecules and the impact of this arrangement on the physical and chemical properties of the molecules.

Regio-

A prefix indicating the region or position in a molecule where a reaction or specific structural change occurs.

Stereochemical

Regarding the arrangement of atoms in molecules and how it affects their characteristics and chemical reactions.