Management Assesses Risks as a Part of Designing and Operating

question 28

Multiple Choice

Management assesses risks as a part of designing and operating internal controls to minimize fraud and errors.Auditors assess risks to

• A)decide the evidence needed in the audit.
• B)fully implement the audit risk model.
• C)enable them to assess the completeness of internal controls.
• D)make sure that the company will continue to operate over the next year.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government on income, property, or sales.

Expenditure Programs

Government policies focused on spending in specific areas such as health, education, and infrastructure to promote economic growth and welfare.

National Defense

Governmental and military activities aimed at protecting a country and its citizens from external threats and ensuring national security.

Efficiency

The optimal allocation of resources to maximize the production of goods and services.