After Considering a Client's Internal Controls, an Auditor Has Concluded

question 61

Multiple Choice

After considering a client's internal controls, an auditor has concluded that it is well designed and is functioning as intended. Under these circumstances, the auditor would most likely

• A) perform tests of controls to the extent outlined in the audit program.
• B) determine the control procedures that should prevent or detect errors and irregularities.
• C) use a combined audit approach that includes tests of controls and substantive tests.
• D) determine whether transactions are recorded to permit preparation of financial statements in accordance with generally accepted accounting principles.

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Definitions:

Energy

The capacity to do work, present in various forms such as electrical, mechanical, thermal, nuclear, and chemical, and can be transformed from one form to another.

Cell

A single unit that converts chemical energy into electrical energy.

No-Load Voltage

The voltage of an electrical device or circuit when no load is connected, representing its maximum voltage output.

Internal Resistance

The resistance inherent to a power source.