An Effective Audit Is One That

question 54

Multiple Choice

An effective audit is one that

• A)reduces the audit risk to the targeted level.
• B)ensures that there are no errors contained in the financial statements.
• C)does not contain errors of a dollar amount higher than 5% of the net income of the company.
• D)is completed on time and within budget.

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Definitions:

Transition

The process or period of change from one state or condition to another.

Tabulations

The systematic arrangement of data in rows and columns, usually for the purposes of analysis or presentation.

Active Voice

A sentence construction in which the subject performs the action expressed by the verb, focusing attention on the doer of the action.

Enumerations

The act of counting or listing items sequentially.