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:

Equilibrium Wage

The wage rate at which the quantity of labor demanded by employers equals the quantity of labor supplied by workers, resulting in a stable labor market condition.

Immigration

The action of coming to live permanently in a foreign country.

Opportunity Cost

The expense incurred by not choosing the second-best option while making a decision.

Labor Decreases

A situation where the workforce or the amount of work done decreases due to factors like automation, layoffs, or economic downturns.