If an Auditor Has Determined That the Client Has an Excellent

question 56

Multiple Choice

If an auditor has determined that the client has an excellent internal control structure:

• A) business risk is significantly reduced.
• B) the type of evidence required changes, but not the quantity.
• C) the amount of audit evidence to be collected might be reduced relative to a situation where the control structure is not adequate.
• D) the auditor can conclude that there is reasonable assurance that the financial statements do not contain material misstatements.