Understanding Entity's Internal Control System
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What is one of the risk assessment procedures that the auditor should perform to obtain an understanding of the entity’s process for monitoring the internal control system?

  • Understanding the entity’s internal audit function, if any, including its nature, responsibilities and activities (correct)
  • Identifying and remedying control deficiencies
  • Evaluating whether the entity's process for monitoring the system of internal control is appropriate to the entity's circumstances
  • Understanding the sources of the information used in the entity’s process to monitor the system of internal control

    • What aspect of the entity’s process should the auditor understand in relation to ongoing and separate evaluations for monitoring the effectiveness of controls?

  • Nature, responsibilities, and activities of the internal audit function
  • The sources of information used in the entity’s process to monitor the system of internal control
  • The identification and remediation of control deficiencies identified
  • The entity's process for monitoring the system of internal control (correct)

    • What should the auditor understand about the basis upon which management considers the information used in the entity’s process to monitor the system of internal control?

  • The sources of information used in the entity’s process
  • Whether the information is sufficiently reliable for the purpose (correct)
  • The identification and remediation of control deficiencies identified
  • The nature, responsibilities, and activities of the internal audit function

    • Which factor should the auditor consider when evaluating whether the entity's process for monitoring the system of internal control is appropriate to the entity's circumstances?

    <p>The nature and complexity of the entity</p> Signup and view all the answers

    In relation to evaluating whether the entity's process for monitoring the system of internal control is appropriate, what should the auditor understand about the entity’s internal audit function?

    <p>The nature, responsibilities, and activities of the internal audit function</p> Signup and view all the answers

    Which procedure involves evaluating whether the entity's process for monitoring the system of internal control is appropriate to the entity's circumstances?

    <p>Evaluating whether the entity's process for monitoring the system of internal control is appropriate to the entity's circumstances</p> Signup and view all the answers

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