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:

Material Facts

Important details or information that could influence a decision or the outcome of a legal case.

New Partners

Individuals who join an existing partnership, bringing in new capital or skills, and thus altering the partnership structure and possibly its strategic direction.

Majority Vote

A voting outcome where more than half of the votes cast are in favor of a proposal or candidate, leading to its approval or election.

Admission of New Partners

The process of integrating a new individual or entity as a partner into an existing partnership, subject to the partnership agreement and applicable laws.