Which of the Following Is Not Required by the Auditing

question 88

Multiple Choice

Which of the following is not required by the auditing standards for the auditor to use the "top-down approach" to audit internal controls over the financial reporting process?

• A)identify entity level controls
• B)identify all instances of management over-ride of controls
• C)consider whether the company maintains controls to address the risk of fraud including the risk of management override of controls
• D)identify relevant assertions associated with significant accounts and disclosures

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Definitions:

Utility Function

A mathematical representation that shows the relationship between an individual's consumption bundle and the level of satisfaction or utility derived from it.

Indifference Curves

Indifference curves are graphical representations used in microeconomics to demonstrate a consumer's preferences for various combinations of two goods, keeping satisfaction constant.

Horizontal Axis

A reference line on a graph or chart running left to right, typically used to represent the independent variable or basis of comparison.

Vertical Axis

In a graph or chart, the vertical line that usually shows the scale of values for the variable measured.