After Completing Tests of Key Controls,the Auditor Should Review the Results

question 15

Multiple Choice

After completing tests of key controls,the auditor should review the results and consider whether

• A)the planned degree of reliance on internal controls is justified.
• B)the audit evidence obtained from the study of internal controls can provide a reasonable basis for an opinion.
• C)further study of internal controls is likely to justify any restriction of tests of details of balances.
• D)sufficient knowledge has been obtained about the entity's entire internal control structure.

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Definitions:

AS Curve

The Aggregate Supply curve, depicting the total supply of goods and services that firms in an economy will produce at different price levels.

Classical Theory of Employment

An economic theory that posits that the economy naturally operates at a level of full employment due to the flexibility of prices and wages.

Total Consumption

The aggregate amount of goods and services consumed by individuals and entities in an economy.

Total Saving

The aggregate saving in an economy, comprising both private saving by households and public saving by the government.