The Purpose of Tests of Controls Is to Determine Whether

question 45

Multiple Choice

The purpose of tests of controls is to determine whether ________.

• A)internal control policies and procedures are working as prescribed
• B)substantive testing can be kept to a minimum
• C)errors and irregularities are prevented or detected in a timely manner
• D)the auditor has an understanding of the control system

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Definitions:

Comparative Negligence

A legal doctrine that reduces the amount of damages a plaintiff can recover in a negligence-based claim, proportionate to their degree of fault in causing the harm.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales.

Negligence Theory

A legal concept that holds parties liable for harm caused by their failure to act as a reasonable person would under similar circumstances.

Properly Manufactured

A term indicating that a product has been made according to the required standards and specifications, ensuring its safety and quality.