The Auditor Is Performing Substantive Tests Several Months Before the End

question 28

Multiple Choice

The auditor is performing substantive tests several months before the end of the year. This most likely means that:

• A) inherent risk is set at moderate to high.
• B) detection risk is set at low to very low.
• C) control risk is set at slightly below maximum to maximum.
• D) control risk is set at maximum.
• E) detection risk is set at moderate to high.

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Definitions:

Open Social Systems

Open social systems are organizations that continuously interact with their environment, exchanging information and resources.

External Environment

The outside forces that can impact an organization's performance, including economic, political, technological, and social factors.

Single Union

A term referring to a situation where only one labor union represents the employees of a particular company or workplace.

Unionism Rate

The percentage of workers in a particular sector or industry that are members of labor unions.