1. The assessed level of control risk can be expressed in quantitative or non-quantitative terms. S2: During the understanding of the internal control structure, the auditor is not required to evaluate the operating effectiveness of the control policies and procedures. $3: For a small business that has a simple internal control structure, a written narrative maysuffice but for a large entity that have complex control structures, a combination of the three methods may be considered appropriate. A: Ifall statements are correct. B-If only one statement is correct. C- If only two statements are correct. D- If all statements are incorrect.
1. The assessed level of control risk can be expressed in quantitative or non-quantitative terms. S2: During the understanding of the internal control structure, the auditor is not required to evaluate the operating effectiveness of the control policies and procedures. $3: For a small business that has a simple internal control structure, a written narrative maysuffice but for a large entity that have complex control structures, a combination of the three methods may be considered appropriate. A: Ifall statements are correct. B-If only one statement is correct. C- If only two statements are correct. D- If all statements are incorrect.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor
Section: Chapter Questions
Problem 32CYBK
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$1. The assessed level of control risk can be expressed in quantitative or non-quantitative terms.
S2: During the understanding of the internal control structure, the auditor is not required to evaluate the operating effectiveness of the control policies and procedures.
$3: For a small business that has a simple internal control structure, a written narrative maysuffice but for a large entity that have complex control structures, a combination of the three methods may be considered appropriate.
A: Ifall statements are correct.
B-If only one statement is correct.
C- If only two statements are correct.
D- If all statements are incorrect.
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