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

question 62

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 internal control
• D)how the company communicates internal control reporting roles and responsibilities
• E)how the company has controlled risks arising from IT

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Definitions:

Smooth Muscle

A type of muscle tissue which is not under voluntary control, found in the walls of internal organs and blood vessels.

Skeletal Muscle

Muscle tissue that is attached to bones, primarily responsible for voluntary movements through contraction.

Cardiac Muscle

A specialized form of striated muscle found in the heart, characterized by its ability to contract involuntarily and rhythmically, facilitating blood circulation.

Autorhythmic

Spontaneous and periodic—for example, in smooth muscle, spontaneous (without nervous or hormonal stimulation) and periodic contractions.