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:

Policy Advisers

Experts who provide analysis and recommendations on public policy issues to policymakers.

Belief System

A set of principles or tenets which together form a basis of faith, morality, or other system of ideas guiding an individual or community.

Zero Coordinate

A point in a coordinate system where both the x-axis and y-axis values are zero, representing the origin.

Origin

The starting point or initial position in a coordinate system or mathematical equation.