After Performing a Study and Evaluation of the Client's System

question 42

Multiple Choice

After performing a study and evaluation of the client's system of internal control, an auditor concludes that the system is well designed and functioning as anticipated.Under these circumstances, the auditor would most likely:

• A) perform all tests of controls to the extent outlined in the preplanned audit program.
• B) not increase the extent of predetermined substantive tests.
• C) cease to perform further substantive tests.
• D) increase the extent of anticipated analytical review procedures.

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Definitions:

Traits

Enduring personal characteristics or attributes that influence behaviors, thoughts, and emotions, contributing to an individual's consistent patterns of feeling, thinking, and acting.

Historical Determinism

A theory that suggests historical events are determined by existing conditions and processes rather than being influenced by individual actions or chance.

Unconscious

Part of the mind that contains thoughts, memories, and desires beyond the reach of conscious awareness, significantly influencing behavior and decisions.

Pathological

Pertaining to or caused by disease; describing behaviors or conditions that are extreme, abnormal, or harmful.