If Controls Are Weak, _______

question 74

Multiple Choice

If controls are weak, _______.

• A)auditors will perform less substantive testing as a result
• B)auditors will increase the control risk assessment and perform additional substantive tests to detect material misstatements
• C)auditors will decrease the control risk assessment and perform additional substantive tests to detect material misstatements
• D)auditors will increase the control risk assessment and perform fewer substantive tests to detect material misstatements

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Definitions:

Kaizen

A Japanese business philosophy of continuous improvement of working practices, personal efficiency, etc.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making incremental enhancements over time.

Kaizen

A Japanese term meaning "continuous improvement," it's a business philosophy focusing on the ongoing improvement of processes in manufacturing, engineering, and business management.

Keiretsu

A network of interlinked Japanese companies, often bound by cross-shareholdings, collaborating closely for mutual benefit.