Which One of the Following Statements Is True? in Deciding

question 111

Multiple Choice

Which one of the following statements is true? In deciding on substantive tests of transactions,

• A) some procedures are commonly employed on every audit regardless of the circumstances.
• B) all procedures are dependent on the adequacy of the controls and the results of the tests of controls.
• C) results obtained in the prior year's audit will not affect the procedures used this year.
• D) the materiality of the item will not influence the choice of procedures used.

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Definitions:

Prohibition

The act of formally forbidding something by law, such as the historical ban on the production and sale of alcoholic beverages in the United States from 1920 to 1933.

Immigration

The act of moving to a country that is not one's native country with the intention to settle there.

Immigration Quotas

A system that sets limits on the number of immigrants allowed to enter a country.

Immigration Act of 1924

A United States federal law that restricted immigration by establishing quotas based on nationality.