Which of the Following Statements Is True

question 11

Multiple Choice

Which of the following statements is true?

• A)Tests of controls are not a form of audit evidence.
• B)With good results from tests of controls, an auditor will most likely increase the level of substantive testing of transactions and balances.
• C)Where the auditor decides to use a substantive approach to obtaining evidence, it is not necessary to obtain an understanding of internal controls to assess the risk of possible financial statement misstatements.
• D)If the preliminary assessment of internal controls suggests that controls cannot be relied on, the auditor should go straight to performing substantive testing.

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Definitions:

Higher Security Standards

Enhanced protocols and measures implemented to protect digital information and systems from unauthorized access, use, disclosure, disruption, modification, or destruction.

IT Infrastructures

The composite hardware, software, network resources, and services required for the operation, management, and development of an enterprise information technology environment.

Exclusive Group

A select group of individuals or entities with special privileges or access not available to others.

SaaS

Software as a Service, a cloud computing model where users access software applications over the Internet, usually on a subscription basis, without needing to maintain or install software locally.