Auditors Typically Rely on Internal Controls of Their Private Company

question 67

Multiple Choice

Auditors typically rely on internal controls of their private company clients:

• A)only as needed to complete the audit and satisfy Sarbanes-Oxley requirements.
• B)only if the controls are determined to be effective.
• C)only if the client asks an auditor to test controls.
• D)only if the controls are sufficient to increase Control Risk to an acceptable level.

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Definitions:

Separate Personalities

Refers to the presence of two or more distinct personality states or identities in an individual, commonly associated with dissociative identity disorder.

Hypnotizability

An individual's susceptibility or capacity to respond to hypnotic suggestion, varying greatly between individuals.