Which of the following is not a reason why an auditor obtains an understanding of internal controls?

a. Understanding the entity's internal control is a requirement of GAAS.
b. The auditor must use the information to assess the risk of material misstatements arising from the lack of internal control.
c. It is the primary basis for the audit report.
d. It assists the auditor in designing the nature, timing and extent of further audit procedures.


c

Business

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A) message of inquiry B) follow-up message C) message of intent D) solicited application message E) prospective application message

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Courts treat contracts of incompetents and intoxicated persons essentially the same, except they are stricter with intoxicated persons because of intoxication's voluntary nature

Indicate whether the statement is true or false

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Foreign sales subsidiaries are wholly owned by their parent firms and are incorporated under the laws of their home country. True/False?

(a) True (b) False

Business

British Airways change effort was the result of a disruption in the organization’s ______.

A. external environment B. deep structure C. culture D. leadership

Business