The Third Phase of the Audit Involves Performing Audit Tests

question 56

Multiple Choice

The third phase of the audit involves performing audit tests. The primary purpose of this step is to obtain evidence about:

• A) the integrity of management.
• B) the effectiveness of management.
• C) the effectiveness of the internal control structure.
• D) the effectiveness and the integrity of management.
• E) the effectiveness of the internal control structure and the fairness of the financial statements.

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Definitions:

Vestibular

Relating to the inner ear system that helps control balance and eye movements.

Orientation

Awareness of oneself in relation to time, place, and identity.

Rods And Cones

Photoreceptor cells in the retina of the eye that are responsible for vision under low light conditions (rods) and color vision and detail in well-lit conditions (cones).

Perceptual Constancies

Refers to the psychological feature that allows humans to perceive objects as having constant properties, such as size and color, despite changes in the environment or perspective.