$1: In addition to controls being specific, they may be broad, such as policies regarding code of ethics. $2: The auditor is concerned only with those policies and procedures that affect the assertions embodied within the entity's financial statements hence, management's view of internal control is broader. $3: In every financial statement audit, an auditor should obtain an understanding of internal control, even for audits of small owner-managed businesses that employ only one or few accounting personnel. 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: In addition to controls being specific, they may be broad, such as policies regarding code of ethics. $2: The auditor is concerned only with those policies and procedures that affect the assertions embodied within the entity's financial statements hence, management's view of internal control is broader. $3: In every financial statement audit, an auditor should obtain an understanding of internal control, even for audits of small owner-managed businesses that employ only one or few accounting personnel. 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
Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process
Section: Chapter Questions
Problem 40RQSC
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$1: In addition to controls being specific, they may be broad, such as policies regarding code of ethics.
$2: The auditor is concerned only with those policies and procedures that affect the assertions embodied within the entity's financial statements hence, management's view of internal control is broader.
$3: In every financial statement audit, an auditor should obtain an understanding of internal control, even for audits of small owner-managed businesses that employ only one or few accounting personnel.
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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