'Enquiring' Is a Control Test Used by Auditors

question 12

Multiple Choice

'Enquiring' is a control test used by auditors.It requires the auditor to:

• A)re-perform the control.
• B)observe client personnel perform their duties.
• C)inspect documents for signatures that indicate the control was performed.
• D)question client personnel about the performance of their duties.

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Definitions:

Default Rates

The percentage of borrowers who fail to repay their loans or meet their debt obligations on time, often used as a measure of credit risk.

Adjustable-Rate Mortgages

Home loans with interest rates that can change over time based on market conditions.

Sub-Prime Borrowers

Individuals who have poor credit histories and are considered high risk for defaulting on loan payments, often facing higher interest rates.

Housing Boom

A period characterized by rapid increases in the value of residential properties, often leading to increased building and investment in housing.