If Tests of Controls Result in Identified Control Deficiencies,how Will

question 9

Multiple Choice

If tests of controls result in identified control deficiencies,how will the auditor assess those deficiencies?

• A)By estimating interest expense based on average interest rates and average debt outstanding.
• B)By comparing current year account balances with prior year account balances.
• C)By determining their severity and the impact on the opinion of internal control effectiveness.
• D)By calculating the long-term debt-to-equity ratio and performing a trend analysis with prior periods.

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Definitions:

Work Teams

Groups of employees who are assigned to collaborate and work together towards achieving a common goal or completing a specific project.

Team Performance

The level of productivity, efficiency, and effectiveness achieved by a group of individuals working together towards common goals or tasks.

Merit Pay

Is pay awarded to employees on the basis of the relative value of their contributions to the organization.

Relative Value

The importance or worth of something in comparison to other items, based on its utility, rarity, or desirability.