Observation May Provide the Auditor with Useful Information to Support

question 76

Multiple Choice

Observation may provide the auditor with useful information to support the information obtained from management and other employees related to the risk of material misstatement.The auditor might observe or inspect

• A)the entity's forecasts
• B)documents,records and internal control assessments
• C)decisions prepared by management
• D)the entity's plant and office facilities

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Definitions:

Substantive Law

The segment of law that deals with the rights and duties of individuals and collective bodies, governing their relationships.

Procedural Law

The rules that govern the process of litigation, including court processes, evidence, and the steps both parties must follow in legal proceedings.

Civil Law

A legal system originating in Europe, characterized by its focus on written statutes and codes as the primary source of law, rather than case law or precedent.

Federal Statutes

Federal statutes are laws enacted by the U.S. Congress that apply to the entire country, covering a broad range of subjects including criminal, civil, and regulatory matters.