The Primary Objective of Compliance Testing in a Financial Statement

question 1

Multiple Choice

The primary objective of compliance testing in a financial statement audit is to determine whether:

• A)Procedures have been updated regularly.
• B)Financial statement amounts are accurately stated.
• C)Internal controls are functioning as designed.
• D)Collusion is taking place.

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Definitions:

Drastically

Describing actions taken with extreme or significant impact, often implying a substantial change or effect.

Persuasion

The process of swaying an individual's beliefs, attitudes, or actions through the use of argument, logic, or enticement.

Impersonal

Lacking personal feeling or attachment; not influenced by, showing, or involving personal feelings.

Reduces Resistance

The act of minimizing opposition or reluctance, often in the context of implementing changes or new ideas.