In Determining the Extent of Reliance to Be Placed on Internal

question 99

Multiple Choice

In determining the extent of reliance to be placed on internal controls, the auditor considers:

• A) effectiveness of the internal controls.
• B) assessed level of control risk.
• C) the costs of increased tests of controls.
• D) all of the above

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Definitions:

Evolutionary Theories

A group of ideas aimed at explaining how biological species evolve over time due to genetic variation, natural selection, and adaptation.

Primary Reaction

An initial automatic response to a given stimulus or situation, often reflexive or instinctual in nature.

Hedonic Adaptation

The noted human inclination to swiftly revert to a stable state of happiness, regardless of significant life changes or impactful positive or negative occurrences.

Subjective Well-being

A person's own evaluation of their happiness and satisfaction with life.