Working Paper Documentation for Test of Controls Should Include _______

question 80

Multiple Choice

Working paper documentation for test of controls should include _______.

• A)all client-owned documents which will be returned to the client once audit fees are paid
• B)comments on this year's audit by the prior auditor
• C)the auditors' opinion of absolute assurance about control risk, and the basis for their conclusion (e.g., underlying evidence)
• D)the auditors' conclusion about control risk, and the basis for their conclusion (e.g., underlying evidence)

---

Definitions:

Isoquants

Isoquants are curves representing combinations of inputs that yield the same level of output in production theory.

MRTS

Marginal Rate of Technical Substitution, the rate at which a firm can substitute one input for another while keeping the level of output constant.

Labor

The human effort, both physical and mental, that is used in the production of goods and services.

Isoquants

Curves on a graph that represent different combinations of inputs that produce the same level of output, used in production theory.