Samples to Test Internal Control Are Intended to Provide a Basis

question 548

Multiple Choice

Samples to test internal control are intended to provide a basis for an auditor to conclude whether:

• A) The control activities are operating effectively.
• B) The financial statements are materially misstated.
• C) The risk of incorrect acceptance is too high
• D) Materiality for planning purposes is at a sufficiently low level.

---

Definitions:

Consideration

An element of a valid contract; the price one is willing to pay for the promise set out in the offer.

Guarantee

A formal assurance or promise, often related to the quality or durability of a product, or the fulfillment of a contract.

Guaranteed

Promised with certainty or underwritten with a promise of payment or performance.

Defaulted

Refers to the failure to meet a legal obligation or agreement, especially failing to make required payments on a loan.