After Auditors Have Completed Testing Controls and Drawn a Conclusion

question 59

Multiple Choice

After auditors have completed testing controls and drawn a conclusion about control risk, _______.

• A)they make decisions about the nature and timing of substantive testing
• B)they are ready to issue the audit opinion
• C)they make decisions about the nature, timing, and extent of substantive testing
• D)they should withdraw if control risk is assessed as high

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Definitions:

Fair Credit Reporting Act

A U.S. federal law established to ensure the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies.

Extend Credit

The provision of goods or services with the expectation that payment will be made in the future.

Creditworthiness

An assessment of the likelihood that a borrower can repay a loan or meet financial obligations.

Collection Agency

A business that pursues payments of debts owed by individuals or businesses.