1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
irakobra [83]
2 years ago
13

In obtaining an understanding of an entity's internal control in a financial statement audit of a nonpublic company, an auditor

is not obligated to:
Business
1 answer:
nata0808 [166]2 years ago
7 0

Complete Question:

In obtaining an understanding of an entity's internal control in a financial statement audit of a non-public company, an auditor is not obligated to:

Group of answer choices

A. Determine whether the control activities have been placed in operation.

B. Perform procedures to understand the design of the internal control policies.

C. Document the understanding of the entity's internal control components.

D. Search for significant deficiencies in the operation of the internal control.

Answer:

D. Search for significant deficiencies in the operation of the internal control.

Explanation:

Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.

The main purpose of internal controls is to guarantee that loss is eliminated in an organization, as there's a reliable and an accurate accounting system.

Basically, an internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency.

Hence, internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.

In obtaining an understanding of an entity's internal control in a financial statement audit of a non-public company, an auditor is obligated to:

I. Determine whether the control activities have been placed in operation.

II. Perform procedures to understand the design of the internal control policies.

III. Document the understanding of the entity's internal control components.

You might be interested in
Which of the following is true regarding positive organizational scholarship? a. It involves monitoring negative practices in or
Harrizon [31]

Answer:

Letter D is correct. It studies how organizations develop human strengths, foster vitality, and unlock potential

Explanation:

Positive Organizational Scholarship is a way for an organization to motivate and stimulate the capabilities of its employees. It is a way of identifying the strengths and weaknesses of each employee and encouraging them to improve their skills and developing new skills that will help them to succeed. joint result of the company.

5 0
3 years ago
Cushman Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold o
patriot [66]

Answer:

Gross profit equals $420,000

Explanation:

To get gross profit , we only discount the cost of goods sold from the Total sales

Gross profit Formula= net sales – cost of goods sold

Gross profit =$800,000- $380,000

Gross profit =$420,000

We use sales returns and allowances, sales discounts and operating expenses to get net income.

5 0
3 years ago
Personal Finance<br> What is a motive?
AleksAgata [21]
Motive is the reason behind the demand which in most cases is either money or quality 
8 0
3 years ago
A healthy fast-casual restaurant that offers only vegetarian and vegan meals insists on portraying organic ingredients in its ad
Gelneren [198K]
The strategy that they use is <span>signaling value by targeting sophisticated buyers

This type of strategy could only work if the target market has specific preferences.
Even though the number of potential consumers for this market tend to be considerably small compared to another market, but the customers that obtained through this strategy tend to show higher level of loyalty.</span>
5 0
3 years ago
I wanna know about debit and credit full explanation ​
BigorU [14]

Answer:

Explanation:

A debit is an entry made in an account. It either increases an asset or expense account or decreases equity, liability, or revenue accounts.

A credit is an entry  alsom made in an account. It either increases equity, liability, or revenue accounts or decreases an asset or expense account.

7 0
3 years ago
Read 2 more answers
Other questions:
  • Firms with the most profitable investment opportunities are willing and able to pay the most for capital, so they tend to attrac
    6·1 answer
  • A national restaurant chain has just opened a sit-down location at Chicago’s O’Hare International Airport. Next to the sit-down
    7·1 answer
  • The most important agreement which codifies human rights is the:
    5·1 answer
  • The customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose by the policies and activitie
    6·1 answer
  • Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: D0 =
    15·1 answer
  • A check returned by a bank because the issuer's cash account balance could not cover the check is called a(n):
    7·1 answer
  • Yolanda (41), a freelance photographer, reports a net profit of $50,000 on Schedule C, Profit or Loss from Business. This is her
    14·1 answer
  • The Pizza Company is considering a new three-year expansion project. The key data are shown below:
    13·2 answers
  • What are different occupations in tourism?​
    6·2 answers
  • The goal of global market segmentation is to break down a new foreign market for a product or a service into different groups of
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!