Tests of Controls Are Conducted When

question 40

Multiple Choice

Tests of controls are conducted when:

• A) controls are not operating as effectively as initially assessed.
• B) controls are expected to be operating effectively.
• C) the auditor determines that substantive testing is not effective.
• D) control risk may be higher than the initial assessment.

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Definitions:

Literacy Rates

The percentage of people who are able to read and write within a specific population.

Unemployment

The condition of being without a paid job despite actively looking for work, often measured by the unemployment rate which is the percentage of the labor force that is jobless.

Incomes

The income generated, particularly through regular payments, from employment or investment returns.

Environmental Quality

The condition or state of the environment based on various indicators, such as air and water purity, and the presence of healthy ecosystems.