The Highest Cost Audit Will Be Incurred When the Auditor

question 69

Multiple Choice

The highest cost audit will be incurred when the auditor expected that the internal control system would:

• A) be effective, but the auditor found extensive control test deviations and significant errors during tests of transactions.
• B) have few effective controls, but client's personnel were well-trained and knowledgeable.
• C) have few effective controls, and tests of balances found many errors.
• D) be very sophisticated, and the tests of controls confirmed this.

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Definitions:

Temporary Tax

A temporary tax is a levy imposed by a government for a specific period before it is automatically revoked or reassessed.

Major Export

The primary good or service sold by a country to foreign markets.

U.S.

The United States of America, a federal republic consisting of 50 states and a federal district.

Unemployment

The situation in which individuals who are able and willing to work cannot find a job.