A conceptually logical approach to the auditor’s evaluation of internal controlconsists of the following four steps:I. Determining the internal controls that should prevent or detect errors and fraud.II. Identifying control deficiencies to determine their effect on the nature, timing, orextent of auditing procedures to be applied and suggestions to be made to the client.III. Determining whether the necessary internal control procedures are prescribedand are being followed satisfactorily.IV. Considering the types of errors and fraud that can occur.What should be the order in which these four steps are performed?(1) I, II, III, and IV (3) III, IV, I, and II(2) I, III, IV, and II (4) IV, I, III, and II
A conceptually logical approach to the auditor’s evaluation of internal controlconsists of the following four steps:I. Determining the internal controls that should prevent or detect errors and fraud.II. Identifying control deficiencies to determine their effect on the nature, timing, orextent of auditing procedures to be applied and suggestions to be made to the client.III. Determining whether the necessary internal control procedures are prescribedand are being followed satisfactorily.IV. Considering the types of errors and fraud that can occur.What should be the order in which these four steps are performed?(1) I, II, III, and IV (3) III, IV, I, and II(2) I, III, IV, and II (4) IV, I, III, and II
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A conceptually logical approach to the auditor’s evaluation of internal control
consists of the following four steps:
I. Determining the internal controls that should prevent or detect errors and fraud.
II. Identifying control deficiencies to determine their effect on the nature, timing, or
extent of
III. Determining whether the necessary internal control procedures are prescribed
and are being followed satisfactorily.
IV. Considering the types of errors and fraud that can occur.
What should be the order in which these four steps are performed?
(1) I, II, III, and IV (3) III, IV, I, and II
(2) I, III, IV, and II (4) IV, I, III, and II
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