After Completing Tests of Key Controls,the Auditor Should Review the Results

question 15

Multiple Choice

After completing tests of key controls,the auditor should review the results and consider whether

• A)the planned degree of reliance on internal controls is justified.
• B)the audit evidence obtained from the study of internal controls can provide a reasonable basis for an opinion.
• C)further study of internal controls is likely to justify any restriction of tests of details of balances.
• D)sufficient knowledge has been obtained about the entity's entire internal control structure.

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Definitions:

Market Development Strategy

A growth strategy that employs the existing marketing offering to reach new market segments, whether domestic or international.

Competitive Advantage

The edge a business has over its competitors, allowing it to generate greater sales or margins and/or retain more customers.

Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors.

Targeting

The process of identifying and directing marketing efforts at a specific segment of the market that is most likely to purchase a product or service.