After Performing a Study and Evaluation of the Client's System

question 58

Multiple Choice

After performing a study and evaluation of the client's system of internal control, an auditor has concluded that the system is well designed and is functioning as anticipated. Under these circumstances the auditor would most likely:

• A) not increase the extent of predetermined substantive tests.
• B) increase the extent of anticipated analytical review procedures.
• C) cease to perform further substantive tests.
• D) perform all tests of controls to the extent outlined in the preplanned audit program.

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Definitions:

Collective Behavior

Activities and behaviors of a group of people who are in a state of shared excitement or concern, often leading to unconventional behavior.

Ingroup

Represents a group to which a person belongs, feels a sense of identity with, and tends to favor over outgroups, which can influence perceptions and behaviors.

Outgroup

A group to which an individual does not belong and is often perceived as fundamentally different or opposed to the ingroup, leading to potential bias or prejudice.

Deindividuation

A psychological state wherein an individual loses self-awareness and self-restraint, often occurring within group contexts, leading to behavior that is uncharacteristic of the individual’s norm.