If the General Control Environment Is Weak

question 73

Multiple Choice

If the general control environment is weak:

• A) auditing through the computer is usually the most cost- effective audit approach.
• B) the auditor will need to rely more on application controls and increase testing of these.
• C) this tends to have a pervasive effect on the application control environment.
• D) all of the above

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Definitions:

Net Income Attributable

The portion of net income (profit) that is available to the shareholders, after accounting for dividends to preferred stockholders and other adjustments.

Noncontrolling Interest

A stake in a company that is less than 50%, implying that the holder does not have control over the company's operations.

Equity Method

The equity method is an accounting technique used to record investments in associate companies where the investor has significant influence but does not control the company outright, typically identified by owning 20-50% of the voting stock.

Deferred Intra-entity

Pertains to transactions between entities within the same company that are not settled immediately but are recorded and settled at a later date.