Which of the Following Occurs When,based on Sample Results,control Risk

question 117

Multiple Choice

Which of the following occurs when,based on sample results,control risk is assessed excessively high?

• A)Audit inefficiency.
• B)A less expensive audit.
• C)Reduction of substantive testing.
• D)Errors that are more likely to occur than anticipated.

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Definitions:

Negotiable Instrument

A document in writing that promises to pay a specified sum of money, either upon request or at an agreed-upon date, with the document specifying the individual responsible for payment.

Enforceable Contract

A legal agreement that is valid and can be upheld in court.

Negotiable Instruments

Financial instruments that are transferable from one party to another, typically including checks, promissory notes, and bills of exchange.

Checks

Checks are written, dated, and signed instruments that direct a bank to pay a specific amount of money from the writer's account to the person or entity in whose name the check has been issued.