Often, for Efficiency, the Auditor Will Ignore Internal Controls

question 81

Multiple Choice

Often, for efficiency, the auditor will ignore internal controls. This can occur because:

• A) detection risk is low.
• B) it is a small entity.
• C) control risk is assumed to be maximum.
• D) all of the above

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Definitions:

Imperfectly Competitive

Describes markets where the conditions necessary for perfect competition are not met, due to factors like monopolies, oligopolies, or monopolistic competition.

Purely Competitive

A type of market organization where there are many small-scale companies offering identical products, with no restrictions on entering or leaving the market.

MRP Curve

The Marginal Revenue Product curve, which depicts the additional revenue generated by employing an additional unit of a resource or factor of production.

Demand

A schedule or curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time.