55. Which of the following most likely would notbe considered an inherent limitation of the potential effectiveness of an entity's internal controls? A. Incompatible duties.B. Management override.C. Mistakes in judgment.D. Collusion among employees.
56. As part of understanding the internal control, an auditor is notrequired to 57. The primary objective of procedures performed to obtain an understanding of the entity's internal control is to provide an auditor 58. The overall attitude and awareness of an entity's board of directors concerning the importance of the client's internal control usually is reflected in its 59. After obtaining an understanding of internal controls and assessing control risk on the audit of a nonpublic company, an auditor decided to perform tests of controls. The auditor most likely decided that A. It would be efficient to perform tests of controls that would result in a reduction in planned substantive tests.B. Additional evidence to support a further reduction in control risk is not available.C. An increase in the assessed level of control risk is justified for certain financial statement assertions.D. There were many internal control weaknesses that could allow errors to enter the accounting system.60. In an audit of financial statements of a nonpublic company in accordance with generally accepted auditing standards, an auditor is required to
- Fall '13