The Highest-Cost Audit Will Be Incurred When the Auditor Expects

question 24

Multiple Choice

The highest-cost audit will be incurred when the auditor expects that the internal control system would

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

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Definitions:

Multinational Corporations

Large corporations operating in multiple countries around the world, often exerting significant economic, political, and social influence in the regions where they operate.

Union Membership

Refers to the affiliation of individual workers with organized labor unions which advocate for the rights, wages, benefits, and working conditions of their members.

Declined

A term referring to a decrease or rejection in context, whether in numbers, agreement to proposals, or the status of something.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, transforming economies that had been based on agriculture and handicrafts into economies based on large-scale industry, mechanized manufacturing, and the factory system.