For Each Control on Which the Auditor Plans to Rely

question 131

Multiple Choice

For each control on which the auditor plans to rely to reduce assessed control risk,he or she must

• A)design one or more tests of controls to verify effectiveness.
• B)report all weaknesses in the management letter.
• C)quantitatively determine the effect on sampling error.
• D)ensure that the test applies to several different transaction audit objectives.

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Definitions:

Institutionalized

The process of establishing something as a norm or standard within an organization or culture, or the state of being accustomed to a specific routine or environment, often used in the context of long-term care or imprisonment.

Not Guilty by Reason of Insanity

A legal defense wherein the defendant is considered not responsible for their criminal actions due to a psychiatric disease or defect at the time of the criminal act.

Maximum-Security Prison

A highly secured correctional facility designed to house and manage the most dangerous inmates with stringent measures.

Mentally Incapacitated

A condition where an individual is unable to make informed decisions or handle their own affairs due to mental limitations or dysfunction.