Which of the Following Is Not True Regarding Appropriate Tests

question 25

Multiple Choice

Which of the following is not true regarding appropriate tests of controls?

• A)The auditor selects controls that are important to the auditor's conclusion about whether the organization's controls adequately address the assessed risk of material misstatement for the relevant debt and equity accounts.
• B)The client's audit committee selects controls that are important to the auditor's conclusion about whether the organization's controls adequately address the assessed risk of material misstatement for the relevant debt and equity accounts.as of the client's year end.
• C)The auditor will select both entity-wide and transaction controls for testing.
• D)If the auditor wants to rely on controls for the financial statement audit,the auditor would test the operating effectiveness of those controls throughout the year.

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Definitions:

Hydrologic Cycle

The water cycle, which includes evaporation, precipitation, and flow to the ocean; supplies terrestrial organisms with a continual supply of fresh water.

Nitrification

The conversion of ammonia (NH3) to nitrate (NO3-) by certain bacteria (nitrifying bacteria) in the soil; part of the nitrogen cycle.

Transpiration

is the process by which moisture is carried through plants from roots to small pores on the underside of leaves, where it changes to vapor and is released to the atmosphere.

Aquatic Ecosystems

Water-based environments, including oceans, lakes, rivers, and wetlands, where plants and animals interact.