Which Statement Is Correct Concerning the Relevance of Various Types

question 77

Multiple Choice

Which statement is correct concerning the relevance of various types of controls to a financial statement audit?

• A)An auditor may ordinarily ignore the consideration of controls when a substantive audit approach is used.
• B)Controls over the reliability of financial reporting are ordinarily most directly relevant to an audit,but other controls may also be relevant.
• C)Controls over safeguarding assets and liabilities are of primary importance,while controls over the reliability of financial reporting may also be relevant.
• D)All controls are ordinarily relevant to an audit.

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Definitions:

Irreversibility

A cognitive limitation in young children's thinking whereby they are unable to mentally reverse an action or process.

Egocentrism

The inability to differentiate between one's own perspective and another person's perspective, often observed in early childhood development.

Centration

A term in cognitive development where a child is only able to focus on one aspect or dimension of an object or situation at a time.

Guided Participation

A teaching method where an experienced person helps a learner by engaging in a shared activity, gradually increasing the learner's responsibility.