Which of the Following Questions Is an Auditor Most Likely

question 16

Multiple Choice

Which of the following questions is an auditor most likely to include on an internal control questionnaire?

• A) Are the assets that secure notes payable critically needed for the entity's continued existence?
• B) Are two or more authorized signatures required on cheques that repay notes payable?
• C) Are the proceeds from notes payable used for the purchase of non-current assets?
• D) Are direct borrowings on notes payable authorized by the board of directors?

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Definitions:

Cognitive Structures

Mental frameworks that help individuals organize and interpret information, fundamental to understanding the world and decision-making processes.

Piaget's

Pertains to the cognitive development theory proposed by Jean Piaget, which outlines how children's mental abilities evolve through stages as they interact with their environment.

Gardner

Refers to Howard Gardner, an American developmental psychologist best known for his theory of multiple intelligences.

Innate

Possessed from birth; inborn or inherent qualities or abilities.