There Will Be Heavy Emphasis on Tests of Controls When

question 55

Multiple Choice

There will be heavy emphasis on tests of controls when

• A)controls are ineffective and assessed control risk is high.
• B)controls are effective and assessed control risk is low.
• C)the auditor is doing a "fraud audit."
• D)it is a first-year audit.

---

Definitions:

Attribution Theory

Attribution theory is a psychological theory focused on how people interpret events and how this relates to their thinking and behavior, especially how they attribute causes to events.

Temporal Precedence

A principle in causal inference, suggesting that a cause must precede its effect in time for a causal relationship to be considered.

Basic Research

A form of scientific investigation that aims to increase the understanding of fundamental principles, without immediate application to practical problems.

Self-Awareness

The conscious knowledge of one’s own character, feelings, motives, and desires.