The underlying assumption of reasonable assurance regarding implementation of internal control means thata. auditor is reasonably assured that fraud has not occurred in the period.b. auditors are reasonably assured that employee carelessness can weaken an internal control structure.c. implementation of the control procedure should not have a significant adverse effect on efficiency or profitability.d. management assertions about control effectiveness should provide auditors with reasonable assurance.e. a control applies reasonably well to all forms of computer technology.
The underlying assumption of reasonable assurance regarding implementation of internal control means thata. auditor is reasonably assured that fraud has not occurred in the period.b. auditors are reasonably assured that employee carelessness can weaken an internal control structure.c. implementation of the control procedure should not have a significant adverse effect on efficiency or profitability.d. management assertions about control effectiveness should provide auditors with reasonable assurance.e. a control applies reasonably well to all forms of computer technology.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The underlying assumption of reasonable assurance regarding implementation of internal control means that
a. auditor is reasonably assured that fraud has not occurred in the period.
b. auditors are reasonably assured that employee carelessness can weaken an internal control structure.
c. implementation of the control procedure should not have a significant adverse effect on efficiency or profitability.
d. management assertions about control effectiveness should provide auditors with reasonable assurance.
e. a control applies reasonably well to all forms of computer technology.
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