Extended Performance of Tests of Controls Is Most Likely When

question 89

Multiple Choice

Extended performance of tests of controls is most likely when:

• A) controls are ineffective and assessed control risk is high.
• B) the auditor is doing a 'fraud audit'.
• C) controls are effective and assessed control risk is low.
• D) it is a first-year audit.

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Definitions:

Withdraw

To withdraw means to take out funds from an account, remove participation in an activity, or retract from a position or commitment.

Retire

To withdraw a financial instrument from circulation, or for an individual to leave the workforce and cease employment.

Invested

The action of allocating resources, usually money, with the expectation of generating an income or profit.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of retirement strategy.