In Which of the Following Situations Will Auditors Typically Rely

question 30

Multiple Choice

In which of the following situations will auditors typically rely on internal controls over financial reporting?

• A) If control risk is assessed at a high level.
• B) If the controls are determined to be designed and operating effectively.
• C) If the clients asks the auditor to test controls.
• D) If the controls are sufficient to increase control risk to an acceptable level.

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Definitions:

Causative Organism

A pathogen or microorganism that causes disease or illness in its host.

Hypertension

High blood pressure, usually a chronic condition; often identified by a systolic blood pressure above 140 mm/Hg and/or a diastolic blood pressure above 90 mm/Hg.

CKD

Chronic Kidney Disease, a condition characterized by a gradual loss of kidney function over time.

Cause-and-Effect Relationship

A principle that states a cause is something that makes something else happen, and an effect is what happens as a result of the cause.