In evaluating internal control, the auditor is basically concerned that the system provides reasonable assurance that:
A. management cannot override the system.
B. material misstatements have been prevented, or detected and corrected.
C. controls have not been circumvented by collusion.
D. operational efficiency has been achieved in accordance with management plans.
Answer: B
You might also like to view...
The airline industries implement yield pricing by offering discounted but limited early purchases, higher-priced late purchases, and the lowest rates on unsold inventory just before it expires
Indicate whether the statement is true or false
Fast selling inventory is less likely to ________.
A) become worthless B) require higher storage costs C) require higher insurance costs D) All statements are correct.
The ________________ is the number of days required to complete the working capital cycle.
What are the suggested four strategies for managing angry negotiators?"
What will be an ideal response?