You Are Performing the Audit of Jenkins and Company

question 117

Multiple Choice

You are performing the audit of Jenkins and Company. Your tests of controls and tests of transactions for accounts payable demonstrate that the controls are operating effectively. This would normally allow you to

• A) eliminate the need for substantive testing of balances for accounts payable.
• B) reduce the need for substantive testing of balances for accounts payable.
• C) reduce control tests in other transactions cycles.
• D) increase the need for substantive testing of balances for accounts payable.

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Definitions:

Significant Points

Critical or important aspects, factors, or moments that have a major impact on a situation or outcome.

Recent Appraisal

The process of evaluating and interpreting recent events or information.

Self-Actualization

In humanistic theory, the innate tendency to strive to realize one’s potential.

Disown Parts

The psychological process of rejecting or denying aspects of oneself, often due to shame or societal pressure.