In the Substantive Approach, If There Is No Internal Control

question 47

Multiple Choice

In the substantive approach, if there is no internal control in place, the auditors _______.

• A)assess RMM as high since both inherent and control risk are high
• B)assess inherent and detective risk as high
• C)assess control and detective risk as high
• D)issue a qualified opinion

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Definitions:

Utility Function

A mathematical representation of how different goods or bundles of goods provide satisfaction to a consumer.

Spaghetti Consumption

The amount of spaghetti eaten, often measured in terms of quantity over a specific time period.

Juliet

A reference to a major character from William Shakespeare's play "Romeo and Juliet," often symbolizing young love or tragic romance.

Utility Function

A mathematical representation of how consumer preferences lead to the selection of goods and services in order to achieve the highest level of satisfaction.