Which of the Following Factors Would Least Likely Affect the Extent

question 912

Multiple Choice

Which of the following factors would least likely affect the extent of the auditor's consideration of the client's internal controls?

• A) The amount of time budgeted to complete the engagement.
• B) How frequently the control is performed.
• C) The expected deviation rate from the control.
• D) The extent to which other tests provide evidence about the same assertion.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Net Present Value

The discrepancy between the current worth of cash coming in and the worth of cash going out over a certain timeframe, utilized in capital budgeting to evaluate an investment's profitability.

Residual Value

This refers to the estimated value of an asset at the end of its useful life.

Cash Inflows

The total amount of money received by a company during a specific period, including revenues, investments, and financing.