Based on a Study and Evaluation Completed at an Interim

question 22

Multiple Choice

Based on a study and evaluation completed at an interim date, the auditor concludes that no significant internal accounting control weaknesses exist. The records and procedures would most likely be tested again at year-end if:

• A) the internal accounting control system provides a basis for reliance in reducing the extent of substantive testing.
• B) tests of controls were not performed by the internal auditor during the remaining period.
• C) inquiries and observations lead the auditor to believe that conditions have changed.
• D) the auditor uses non-statistical sampling during interim compliance testing.

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Definitions:

Western Capitalism

A socio-economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined primarily by competition in a free market.

Natural Resources

Materials and components found in nature that can be used for economic gain or necessary for life, such as water, timber, and minerals.

Powerful Nations

Countries that possess significant political, economic, and military influence on a global scale.

Stratification

The hierarchical arrangement of individuals in a society based on factors like wealth, income, race, education, and power.