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:

Genetic Information Nondiscrimination Act

A federal law that prohibits discrimination in employment and health insurance based on genetic information.

Genetic Information

Genetic information pertains to data about an individual's genetic tests and the genetic tests of their family members, as well as information about any disease, disorder, or condition in family members. It is relevant in contexts such as healthcare and genetics research.

Americans with Disabilities Act

A U.S. federal law enacted in 1990 that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places.

AIDS

Acquired Immunodeficiency Syndrome, a chronic, potentially life-threatening condition caused by the human immunodeficiency virus (HIV).