The Primary Purpose of Obtaining an Understanding of the Company's

question 3

Multiple Choice

The primary purpose of obtaining an understanding of the company's internal controls in the financial statement audit is ________.

• A)to help the auditors develop the audit program
• B)to make suggestions to management to improve internal controls
• C)to obtain direct sufficient appropriate audit evidence to afford a reasonable basis for an opinion on the financial statements
• D)to determine whether the company has changed any accounting principles

---

Definitions:

Identity Formation

The development of a distinct personality or self-concept that integrates various roles, attitudes, skills, and beliefs.

Erikson

A developmental psychologist known for his theory on the psychosocial development of humans, which describes eight stages from infancy to adulthood with each stage presenting a conflict that must be resolved.

Adolescence

This period involves significant changes in both physiological and psychological aspects, usually starting with puberty and concluding upon reaching legal age.

Identity Development

The process through which individuals achieve a sense of who they are and of their moral and political beliefs, their career preferences, and their relationship to their culture and community.