After Considering a Client's Internal Controls,an Auditor Has Concluded That

question 11

Multiple Choice

After considering a client's internal controls,an auditor has concluded that the internal controls are well designed and are functioning as intended.Under these circumstances,the auditor would most likely

• A)perform tests of controls to the extent outlined in the audit program.
• B)determine the control procedures that should prevent or detect errors and irregularities.
• C)use a combined audit approach that includes tests of controls and substantive tests.
• D)determine whether transactions are recorded to permit preparation of financial statements in accordance with generally accepted accounting principles.

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Definitions:

Instrumentality

The belief or expectation that performing a certain behavior or achieving a particular level of performance will lead to a desired outcome or reward.

Reinforcement Theory

Is a process theory, usually associated with B. F. Skinner, which proposes that all behavior is a function of its consequences.

Fixed Interval Schedules

Are interval schedules in which the amount of time that must pass before a reward is given is constant over time.

Variable Ratio Schedules

Are ratio schedules in which the number of times a behavior must occur before it is rewarded changes over time.