The Auditor's Preliminary Assessment of Control Risk Is Based on an Understanding

question 93

True/False

The auditor's preliminary assessment of control risk is based on an understanding of the control system as it has operated in the past and is designed to operate.

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Definitions:

Corporate Articles

Legal documents filed with a state government to officially form a corporation, outlining its structure and purpose.

Appoint

To assign a job or role to someone.

Securities And Exchange Commission

A U.S. federal agency that oversees the securities markets and protects investors by enforcing securities laws.

Shareholder

An individual or institution that owns one or more shares of stock in a public company.