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.

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Definitions:

Concept To Reality

Involves transforming abstract ideas into tangible outcomes or products through planning, development, and execution.

Planning

The process of defining objectives, deciding on strategies, and outlining tasks and schedules to achieve the desired outcomes.

Continuous Process

An ongoing operational process in manufacturing or production that is characterized by a constant output or continuous flow of products or materials.

Planning

The methodology of establishing objectives, formulating strategies, and detailing the tasks and timelines needed to achieve those objectives.