The Highest Cost Audit Will Be Incurred When the Auditor

question 16

Multiple Choice

The highest cost audit will be incurred when the auditor expected that the internal control system would:

• A) have few effective controls, but client's personnel were well- trained and knowledgeable.
• B) be effective, but the auditor found extensive control test deviations and significant errors during tests of transactions.
• C) have few effective controls, and tests of balances found many errors.
• D) be very sophisticated, and the tests of controls confirmed this.

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Definitions:

Norms

Shared standards of acceptable behavior within a society or group.

Decision Process

The cognitive process involved in choosing between different alternatives or developing strategies to address a problem or achieve a goal.

Taking Responsibility

The act of acknowledging and accepting the choices one has made, the actions one has taken, and the results they have led to.

Informational Conformity

Refers to the process of conforming to others' behavior under the belief that their interpretation of an ambiguous situation is more accurate.