The Auditor's Primary Purpose for Evaluating Internal Control Is to ________

question 29

Multiple Choice

The auditor's primary purpose for evaluating internal control is to ________.

• A)help design of the final audit plan
• B)help management design internal control systems
• C)help judge how much control is necessary
• D)help determine much business risk is acceptable

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Definitions:

Degree of Control

The extent of influence or authority an entity has over its operations, processes, or decisions.

Quality

Pertains to the degree of excellence or superiority that an object or entity possesses, often measured against standards or requirements in a given context.

Case Law

Law established by previous court decisions and based on precedent rather than statutory laws.

Franchising

A method of doing business wherein a franchisor licenses its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee.