Why Does an Auditor Evaluate the Client's System of Internal

question 68

Multiple Choice

Why does an auditor evaluate the client's system of internal control?

• A) to ascertain whether irregularities are probable
• B) to ascertain whether any employees have incompatible functions
• C) to determine the extent of substantive tests which must be performed
• D) to determine the extent of tests of controls which must be performed

Analyze the consequences of technological changes and preferences on market equilibrium.

Understand the factors that cause movement along the demand curve versus shifts in the demand curve.

Differentiate between a decrease in demand and a decrease in quantity demanded.

Calculate the total market quantity demanded with given individual demands.

---

Definitions:

Incidental Damages

Incidental damages refer to the costs incurred by one party due to another's breach of contract, including expenses directly resulting from the breach, such as costs to find a replacement.

Installment Contract

A contractual arrangement where payment is made in parts over a period of time until the full purchase price is paid.

CISG

Stands for the United Nations Convention on Contracts for the International Sale of Goods, which governs the sale of goods between businesses in different countries.

Avoidance

A legal principle or action taken to invalidate or cancel a contract, thereby relieving the parties of their obligations under that contract.