The Auditor Always Needs to Investigate Any Control Exceptions (Deviations)

question 41

Multiple Choice

The auditor always needs to investigate any control exceptions (deviations) that he or she identifies during testing to find out, to the extent practical, _______.

• A)the causes and the amounts involved
• B)the financial statement accounts affected
• C)the potential effect on other audit procedures
• D)All of these answer choices are correct.

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Definitions:

Nonprofit Organization

An entity that operates for a collective, public or social benefit, rather than to generate profit for owners or investors.

Overseas Subsidiaries

Companies owned or controlled by a parent company but located in a different country, often used to enter or expand in foreign markets.

Revenue-generating Holdings

Assets or investments that generate income or profit for a business or individual.

Equipment-based Services

Services that primarily rely on physical machinery and equipment to deliver value to customers, such as laundry, photography, or heavy machinery operations.