Which of the Following Statements Best Describes How a Detailed

question 977

Multiple Choice

Which of the following statements best describes how a detailed audit plan of a CPA who is engaged to audit the financial statements of a large publicly held company compares with the audit client's comprehensive internal audit program?

• A) The comprehensive internal audit plan is substantially identical to the audit plan used by the CPA because both cover substantially identical areas.
• B) The comprehensive internal audit plan is less detailed and covers fewer areas than would normally be covered by the CPA.
• C) The comprehensive internal audit plan is more detailed and covers areas that would normally not be covered by the CPA.
• D) The comprehensive internal audit plan is more detailed although it covers fewer areas than would normally be covered by the CPA.

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Definitions:

Conventional Tillage

A farming practice that involves plowing the soil to prepare for sowing seeds, often leading to soil erosion and loss of nutrients.

Conservation Tillage

Agricultural practices that minimize the disruption of the soil's structure and composition, aiming to improve water absorption, reduce erosion, and enhance soil health, ultimately supporting sustainable agriculture.

Terracing

An agricultural practice of creating terraces on steep slopes to reduce soil erosion and water runoff, while making steep land more usable for farming.

Wind Erosion

The process of removing soil particles by wind, leading to land degradation and a loss of soil fertility.