Which One of the Following Statements Is TRUE? in Deciding

question 83

Multiple Choice

Which one of the following statements is TRUE? In deciding on substantive tests of transactions:

• A) the materiality of the item will NOT influence the choice of procedures used.
• B) all procedures are dependent on the adequacy of the controls and the results of the tests of controls.
• C) results obtained in the prior year's audit will NOT affect the procedures used this year.
• D) some procedures are commonly employed on every audit regardless of the circumstances.

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Definitions:

Imperfect Price Signals

Situations in markets where prices do not fully reflect all available information, leading to inefficiencies in allocation of resources.

Political Pressure

The use of influence, persuasion, or coercion by individuals or groups to affect governmental decision-making or policy outcomes.

Environmental Problems

Issues affecting the natural environment, often due to human activities, that result in negative impacts on ecosystems and human health.

Politically Weak

A condition or state in which an individual, group, or nation lacks political power, influence, or effective control.