required to 42. In an audit of financial statements in accordance with generally accepted auditing standards, an A. Identify specific internal control structure activities relevant to management's financial statement assertions. B. Perform tests of controls to evaluate the effectiveness of the entity's accounting C. Determine whether procedures are suitably designed D. Document the auditor's understanding of the entity's internal control structure. to prevent or detect material misstatements. 43. Management's attitude toward aggressive financial reporting and its emphasis on meeting projected profht goals most likely would significantly influence an entity's control environment when A Extemal policies established by parties outside the entity affectcng practices. C. Internal auditors have direct access to the board of directors D. The audit committee is active in overseeing the entity's financial reporting policies. and the entity's management. 44. If a control total were to be computed on cach of the following data items, which would best be idenified a hash total for a payroll EDP application? A. Net pay. B. Department numbers. C. Hours worked. D. Total debits and total credits. 45. Which of the following procedures most likely would be included as part of an auditor's tests of cots A. Inspection. B. Reconciliation. C. Confirmation. D. Analytical procedures. 46. If a control total were to be computed on each of the following data items, which would best be ide a hash total for a payroll IT application? A. Gross pay. B. Hours worked. C. Department number. D. Number of employees