Tests of Controls Are Conducted When

question 5

Multiple Choice

Tests of controls are conducted when:

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

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Definitions:

Intellectual Disability

A term used to describe a variety of developmental conditions characterized by significant limitations in both intellectual functioning and in adaptive behavior, which covers a range of everyday social and practical skills.

Prenatal Nutrition

The dietary and nutritional intake and considerations for a woman during pregnancy, affecting both the mother's and the developing fetus's health.

Genetic Abnormalities

Variations or mutations in genes that can lead to diseases, disorders, or physical abnormalities.

Flynn Effect

The observed substantial and long-term increase in both fluid and crystallized intelligence test scores measured in many parts of the world over the 20th century.