After Considering the Client's Internal Control,the Auditors Have Concluded That

question 29

Multiple Choice

After considering the client's internal control,the auditors have concluded that it is well-designed and is functioning as anticipated.Under these circumstances,the auditors would most likely:

• A)Cease to perform further substantive procedures.
• B)Reduce substantive procedures in areas where the internal control was found to be effective.
• C)Increase the extent of anticipated analytical procedures.
• D)Perform all tests of controls to the extent outlined in the preplanned audit plan.

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Definitions:

Constitution

The supreme law of the United States, establishing the framework of the national government, its powers, and the rights of its citizens.

Grandfather Clause

A legal or policy provision that allows certain individuals or activities to continue under old rules while new rules apply to all future cases, often used to exempt some people from new regulations.

Literacy Tests

Historically used in the United States as a means to disenfranchise racial minorities, particularly African Americans, under the guise of assessing eligibility to vote.

Disfranchised

Disfranchised refers to individuals who have been deprived of the right to vote or other rights of citizenship.