Which of These Would Be a Reason for Adopting a Predominantly

question 44

Multiple Choice

Which of these would be a reason for adopting a predominantly substantive approach?

• A) accounts are affected by more than one transaction class.
• B) detection risk has been assessed as high.
• C) there are no significant control procedures that pertain to the assertion.
• D) control risk has been assessed as low.

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Definitions:

Free Enterprise

An economic system based on private ownership, voluntary exchange, competition, and the freedom of individuals to engage in business transactions.

Oligopoly

A market structure characterized by a small number of large firms dominating the industry, often leading to limited competition.

Pure Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes, leading to significant control over prices.