34. Which of the following is correct with respect to the design and use of business documents?medium a. Not all documents used for internal purposes need to be prenumbered.b. Documents should be designed for single purposes only to avoid confusion in their c. Documents should be designed to be understandable only by those who use them.d. Documents designed for external use must be prenumbered.a use.35. (Public) PCAOB Standard 2 requires auditors to evaluate the effectiveness of the audit committee’smedium oversight of the company’s:aExternal financial Efficiency of Internal control over financialreporting operations reporting36. Which of the following is correct?medium c only.specifictransactions.transaction.37. Which of the following principles is not necessary for the proper design and use of documentsmedium and records?
a 38. Narratives, flowcharts, and internal control questionnaires are three common methods of:medium a. testing the internal controls.b. documenting the auditor’s understanding of internal controls.c. designing the audit manual and procedures.d. documenting the auditor’s understanding of a client’s organizational structure.b Arens/Elder/Beasley39. _____ deal with ongoing or periodic assessment of the quality of internal control bymedium management.b 40. (Public) Smaller public companies face challenges implementing effective internal control due tomedium ______.c 41. Which of the following is not one of the levels of an absence of internal controls?medium a
- Spring '13