A primarily Substantive Approach would Usually Be Chosen When the Auditor

question 40

True/False

A primarily substantive approach would usually be chosen when the auditor concludes that the costs of performing additional procedures to obtain a more extensive understanding of internal controls and tests of controls to support a lower assessed level of control risk would exceed the cost of performing more extensive substantive tests.

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Definitions:

The Holocaust

The systematic, state-sponsored persecution and annihilation of six million Jews by the Nazi regime and its collaborators during World War II.

Kurt Lewin

Known as the father of modern social psychology, he developed theories on group dynamics and organizational development.

Function

In mathematics, a relation between a set of inputs and a set of permissible outputs with the property that each input is related to exactly one output; in general, an activity or purpose natural to or intended for a person or thing.

Situation

The set of environmental and contextual circumstances or conditions surrounding and affecting an event, action, or decision.