In Order to Further Understand Internal Control,an Auditor May Use

question 71

Multiple Choice

In order to further understand internal control,an auditor may use inquiry methods by:

• A)interviewing key employees to gain further insight into the internal control environment.
• B)observing the safeguarding of assets by checking locked doors and safes.
• C)tracing a transaction from the boundary of the organization through to the final reporting.
• D)documenting thoroughly the internal control through the use of narratives.

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Definitions:

Sociohistorical Context

The combination of social, cultural, and historical factors that influence and shape events or phenomena at a given time.

Fundamental Disputes

Essential disagreements or debates over basic principles within a field of study or an area of professional practice.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Functionalism

A theory in sociology and anthropology that interprets and describes society as a structure with interrelated parts designed to meet the biological and social needs of the individuals in that society.