If the Client Has Well-Designed, Implemented, and Documented Controls Over

question 46

Multiple Choice

If the client has well-designed, implemented, and documented controls over the preparation of accounting estimates, then an appropriate risk response would be _______.

• A)to focus this audit time on another area, and conclude there is no material risk in this area
• B)to test the operating effectiveness of the controls
• C)to test the operating effectiveness of the assertions
• D)to obtain written representation from management to this effect, which negates the need for any testing

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Definitions:

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli, helping organisms to focus on changes in their environment.

Masking Stimuli

A process in which the perception of one stimulus (the mask) interferes with the perception of another stimulus, reducing its recognizability.

Context Effects

The influence of environmental factors on one's perception of a stimulus, demonstrating how context can shape and influence decision making and judgment.

Subliminal Sensation

A perception of stimuli that occur below the threshold of conscious awareness.