What Is an Appropriate Strategy When an Audit Area Has

question 58

Multiple Choice

What is an appropriate strategy when an audit area has a low acceptable risk?

• A) Review the completed working papers more thoroughly.
• B) Increase the amount of audit evidence gathered.
• C) Assign more experienced staff to that area.
• D) all of the above

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Definitions:

Supply-side Economics

An economic theory that suggests lower taxes and decreased regulation will stimulate the economy by increasing production.

Incentive

A factor, monetary or otherwise, that motivates individuals or entities to behave in a certain way.

Work

Physical or mental effort done in order to achieve a purpose or result, often related to employment or tasks.

Invest

The action of allocating resources, usually financial, into something with the expectation of generating income or profit.