After Considering a Client's Internal Controls, an Auditor Has Concluded

question 44

Multiple Choice

After considering a client's internal controls, an auditor has concluded that they are well designed and are functioning as intended.Under these circumstances the auditor would most likely:

• A) not increase the extent of predetermined substantive tests.
• B) determine whether transactions are recorded to permit preparation of financial statements in conformity with generally accepted accounting principles.
• C) perform reduced tests of controls to the extent outlined in the audit program.
• D) determine the control procedures that should prevent or detect errors and irregularities.

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Definitions:

Activation-Synthesis

A theory that suggests dreams are the result of the brain's attempt to make sense of neural activity that occurs during sleep, particularly during REM sleep.

Antisocial Behavior

A type of behavior that is often seen as going against societal norms and can include actions that harm or lack consideration for the well-being of others.

Hypnotized Subjects

Individuals who are in a state of hypnosis, marked by increased suggestibility, relaxation, and altered consciousness.

Unhypnotized Individuals

People who are in their normal state of consciousness and not under the influence of hypnosis.