What Term Refers to the Determination of the Amount of Time

question 56

Multiple Choice

What term refers to the determination of the amount of time to spend testing the client's internal controls and conducting detailed testing of transactions and account balances?

• A)Audit strategy
• B)Risk response
• C)Reporting
• D)Risk assessment

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Definitions:

Economies of Scale

The reduction in per-unit production costs resulting from an increase in the scale of production.

Service Provider

A company or an individual that offers services to others in exchange for payment, such as telecommunications, utilities, or healthcare.

Opportunity Costs

The cost of the most favorable alternative that is lost by deciding on a particular option.

Returns to Scale

The change in output resulting from a proportional change in all inputs used in the production process.