Before Concluding on the Effectiveness of a Control, an Auditor

question 21

Multiple Choice

Before concluding on the effectiveness of a control, an auditor must determine:

• A)The required degree of company compliance with control procedures.
• B)The maximum possible dollar amount that would not affect a user's decision based on the financial statements.
• C)The actual degree of company compliance with control procedures.
• D)The nature, extent and timing of planned substantive procedures.

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Definitions:

Prohibition

The legal act of prohibiting the manufacture, transportation, and sale of alcohol, most famously enacted in the United States from 1920 to 1933.

Andrew Mellon

Andrew Mellon was an American banker, businessman, industrialist, philanthropist, art collector, and politician who served as the U.S. Secretary of the Treasury from 1921 to 1932.

Treasury

A government department responsible for managing the monetary resources, including revenue and expenditure, of a country or state.

Tariffs

Taxes imposed on imported goods, often used to protect domestic industries from foreign competition or to generate revenue.