Consider the statements below as you answer the question: • The chief financial officer of TNL Corporation is a certified public accountant.• OBP Corporation's internal audit manager is a certified fraud examiner.• CPQ Corporation maintains a set of systems flowcharts that describe current business processes.• DKM Corporation encrypts all data transmitted over its wireless network.Which statements relate to the second generic step in a financial statement audit?
A)TNL and OBP
B)TNL and CPQ
C)OBP and CPQ
D)TNL, OBP and CPQ

Question

Quizplus · Accepted Answer

The second generic step in a financial statement audit is to obtain an understanding of the entity and its environment, including its internal control. Statements A and D relate to this step because they provide information about the company's financial management and internal control systems.

Consider the Statements Below as You Answer the Question: •