Which of the Following Is an Accurate Statement Relating to the Extent

question 52

Multiple Choice

Which of the following is an accurate statement relating to the extent of procedures?

• A) If an auditor wants a lower assessed control risk than the preliminary assessed control risk, the number of controls tested increases while the extent of the tests for each control decrease.
• B) The extent of testing depends on the frequency of the operation of the controls.
• C) All controls must be tested only at year-end.
• D) The frequency of testing is the same for both manual and computer controls.

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Definitions:

Microeconomics

The branch of economics that studies the behavior of individuals and firms in making decisions on the allocation of limited resources.

Macroeconomics

The branch of economics that studies the behavior and performance of an economy as a whole, including inflation, unemployment, and economic growth.

Industrial Organization

A field of economics that studies the structure of and boundaries between firms and markets, and the strategic interactions within them.

Subsidize Tobacco Production

Financial support provided by governments to farmers or companies to assist in the growing or manufacturing of tobacco products.