An Auditor Should Consider Two Key Issues When Obtaining an Understanding

question 46

Multiple Choice

An auditor should consider two key issues when obtaining an understanding of a client's internal controls. These issues are:

• A) the effectiveness and efficiency of the controls.
• B) the frequency and effectiveness of the controls.
• C) the design and implementation of the controls.
• D) the implementation and efficiency of the controls.

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Definitions:

Moral Expectations

The standards of behavior viewed as right or appropriate by a society or a group, influencing individuals' conduct.

Corporate Social Performance

An organization's total impact on society, encompassing its economic, legal, ethical, and discretionary responsibilities.

Positive Impact

A beneficial effect or contribution to the improvement or enhancement of something.

Compliance

Compliance refers to the act of adhering to laws, regulations, standards, and ethical practices set by authoritative bodies or organizations.