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

question 55

Multiple Choice

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

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

---

Definitions:

Grammatical Sentences

Constructions that follow the rules set by the grammar of a particular language, allowing for meaningful and structured communication.

Means-End Analysis

A problem-solving technique that involves breaking down a larger goal into smaller, manageable steps and solving each step to eventually reach the final goal.

Mental Representation

The cognitive construct that represents external reality within the mind, including ideas, visual images, and symbols.

Sensory Experience

The reception and interpretation of information by the senses, including sight, sound, taste, touch, and smell.