When Controls Are Effective and Assessed Control Risk Is Low

question 87

Multiple Choice

When controls are effective and assessed control risk is low:

• A) there will be heavy emphasis on tests of controls.
• B) some substantive tests of transactions will still be performed.
• C) only substantive tests of transactions will be used.
• D) both A and B

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Definitions:

Act of God

A natural and unavoidable catastrophe that interrupts the expected course of events and is not caused by human intervention.

Shed

A simple roofed structure used for storage, hobbies, or as a workshop.

Liability

The state of being legally responsible for something, especially in terms of debts or legal wrongs.

Disclaimer of Liability

A statement intended to specify or delimit the scope of rights and obligations that may be exercised and enforced by parties in a legally recognized relationship.