For Small Clients, It Is Often More Efficient to Adopt

question 5

Multiple Choice

For small clients, it is often more efficient to adopt the predominantly substantive approach.Which of the following is a reason for this?

• A)They may not have adequate resources to implement all appropriate controls.
• B)Controls may not be effective.
• C)The size of the entity may make it inefficient for the auditor to rely on these controls.
• D)All of the above.

---

Definitions:

Disintegration

The process of breaking down or dissolving, which in psychological terms can refer to the disorganization or fragmentation of thought processes.

Foresee

The ability to anticipate or predict future events or outcomes based on current knowledge or insights.

Disruption

An interruption or disturbance that challenges the normal course or functioning of something, often leading to innovative solutions or changes.

Cluster

A group of similar things or people positioned or occurring closely together.