What Are Tests of Controls

question 124

Multiple Choice

What are tests of controls?

• A)Audit procedures designed to evaluate the operating effectiveness of controls in preventing, or detecting and correcting, material misstatements at the assertion level.
• B)Audit procedures designed for the determining the amount of time spent testing the client's internal controls and conducting detailed testing of transactions and account balances.
• C)Audit controls for developing an audit plan that details the nature, extent, and timing of audit procedures to be performed.
• D)Audit timelines of when audit activities occur for the audit of a client that uses a calendar year-end.

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Definitions:

Revised Act

A revised act is a piece of legislation that has been amended, updated, or rewritten to reflect current standards, practices, or understanding.

Quorum

The minimum number of members needed to be present for a meeting to legally conduct business and make decisions.

Dividends

Distributions from a company to its shareholders, derived from the company's earnings or accumulated savings.

Statutory Close Corporation Supplement

A legal provision or amendment that provides specific regulations and frameworks for closely held corporations.