After the Auditor Has Identified the Key Internal Controls and Weaknesses

question 100

Multiple Choice

After the auditor has identified the key internal controls and weaknesses and assessed control risk,it is appropriate to decide whether

• A)substantive tests will be increased sufficiently to justify the cost of performing tests of controls.
• B)substantive tests will be reduced sufficiently to justify the cost of performing tests of controls.
• C)tests of controls will be increased sufficiently to justify the cost of performing substantive tests.
• D)tests of controls will be reduced sufficiently to justify the cost of performing substantive tests.

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Definitions:

Social Club Meeting

A gathering of members belonging to a specific social group or club for the purposes of recreation, discussion, or communal activities.

Less Serious

Refers to situations, actions, or conditions that are considered to be of lower severity or significance.

Conversion

The unauthorized act of taking someone else's property and converting it to one's own use.

Automobile

A road vehicle, typically with four wheels, powered by an internal combustion engine or electric motor, used for transporting passengers.