After Considering a Client's Internal Controls, an Auditor Has Concluded

question 13

Multiple Choice

After considering a client's internal controls, an auditor has concluded that it is well designed and is functioning as intended. Under these circumstances the auditor would most likely:

• A) determine whether transactions are recorded to permit preparation of financial statements in conformity with generally accepted accounting principles.
• B) perform reduced tests of controls to the extent outlined in the audit program.
• C) not increase the extent of predetermined substantive tests.
• D) determine the control procedures that should prevent or detect errors and irregularities.

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Definitions:

Social Relationships

Connections between individuals in a society that involve various forms of interaction, communication, and dependency.

Deprivation

The damaging lack of material benefits considered to be basic necessities in a society.

Collective Action

The phenomenon of people coming together and pooling their resources, often in the context of movements or initiatives, to achieve common goals.

Well-Integrated Members

Individuals who are fully incorporated into the social, cultural, and economic structures of a society, having both rights and obligations.