After Obtaining an Understanding of Internal Control and Arriving at a Preliminary

question 5

Multiple Choice

After obtaining an understanding of internal control and arriving at a preliminary assessed level of control risk,an auditor decided to perform tests of controls.The auditor most likely decided that:

• A)Additional evidence to support a reduction in the assessed level of control risk is not available.
• B)An increase in the assessed level of control risk is justified for certain financial statement assertions.
• C)It would be efficient to perform tests of controls that would result in a reduction in planned substantive procedures.
• D)There were many internal control deficiencies that would allow misstatements to enter the accounting system.

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Definitions:

Drive

An internal urge that motivates behavior towards fulfilling a need or achieving a goal.

Motivation Theorist

An individual who studies and develops concepts explaining why people are driven to meet certain needs or pursue particular goals.

Biological Needs

Essential physiological requirements that maintain life, such as the need for oxygen, food, water, and sleep.

Social Needs

Human needs that relate to interaction with others, including belonging, love, and affection, often positioned as essential for psychological well-being.