If an Auditor Has Determined That the Client Has an Excellent

question 16

Multiple Choice

If an auditor has determined that the client has an excellent internal control structure:

• A) the type of evidence required changes, but not the quantity.
• B) the auditor can conclude that there is reasonable assurance that the financial statements do not contain material misstatements.
• C) business risk is significantly reduced.
• D) the amount of audit evidence to be collected might be reduced relative to a situation where the control structure is not adequate.

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Definitions:

Secret Processes

Proprietary methods or procedures used in manufacturing or business operations that are not disclosed to the public.

Copyright

A form of intellectual property protection that grants the creator of original works of authorship exclusive rights to their use and distribution, typically for a limited time.

Made-For-Television Movie

is a film that is produced for and initially broadcast on television networks, rather than being released in movie theaters.

Original Novel

A literary work that is innovatively written and has not been published before, offering new characters, storylines, or ideas.