Which of the Following Is Not a Reason That the Auditor

question 25

Multiple Choice

Which of the following is not a reason that the auditor must gain an understanding of the client's internal control system?

• A)to better understand the client,its risks,and how it manages those risks.
• B)to assess control risk and identify the types of financial statement misstatements that are most likely to occur.
• C)to plan direct tests of account balances to determine if misstatements have occurred.
• D)all are reasons why auditors must gain an understanding of the client's internal control system.

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Definitions:

Forensic Evaluations

Assessments conducted by qualified professionals to provide information to legal decision-makers about psychological aspects of legal cases.

Objective Findings

Refers to information or data that is measurable, observable, and not influenced by personal feelings or opinions.

Mental Health Status

An individual's overall psychological well-being and the presence or absence of mental disorders.

Justice

Treating all clients fairly and working with them in a manner that is appropriate based on their presenting situation and condition.