When Does the Auditor Normally Conduct Tests of Controls

question 19

Multiple Choice

When does the auditor normally conduct tests of controls?

• A)prior to the completion of the tests of details
• B)after the completion of all analytical review
• C)prior to the preparation of the client risk analysis
• D)prior to the finalization of the audit risk model

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Definitions:

Time Inconsistency

A situation where a person's preferences change over time in such a way that what is preferred at one point in time is inconsistent with what is preferred at another time.

Behavioral Economics

A field of economics that examines the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Economic Behavior

The study of how individuals, households, and organizations make choices to allocate resources in the midst of scarcity and the effects of these decisions on markets and the economy.

Dictator Game

An experimental economics scenario where one player, the "dictator," determines how to split an endowment between themselves and another player.