In Determining the Level of Audit Efficiency, Once the Auditor

question 40

Multiple Choice

In determining the level of audit efficiency, once the auditor has identified the key internal controls and identified any deficiencies in order to determine the level of control risk appropriate for a private company client, it is appropriate to decide whether:

• A)substantive tests can be reduced sufficiently to justify costs of performing tests of controls.
• B)substantive tests can be increased sufficiently to justify costs of performing tests of controls.
• C)tests of controls can be increased sufficiently to justify costs of performing substantive tests.
• D)tests of controls can be reduced sufficiently to justify costs of performing substantive tests.

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Definitions:

Spatial Location

The specific physical position or area in space that an object or person occupies.

Paired Associate Learning

A learning process where two items are linked together in a person's mind, enhancing the recall of one item when presented with the other.

Ebbinghaus's Syllables

Arbitrary combinations of letters used by Hermann Ebbinghaus in his studies on memory, specifically in experiments related to the learning and forgetting curves.

Meter

A unit of length in the International System of Units (SI), equivalent to approximately 3.28084 feet.