If Internal Controls Are Tested and Are Considered Effective, the Auditor

question 83

True/False

If internal controls are tested and are considered effective, the auditor generally will increase both substantive tests of transactions and tests of details of balances.

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Definitions:

Policy Makers

Individuals or groups responsible for making decisions and setting policies in governmental or corporate sectors.

Phillips Curve

A curve showing possible combinations of the inflation rate and the unemployment rate.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to invest in one option over another.

Reducing Unemployment

The act of implementing policies or actions by governments or businesses to decrease the number of unemployed individuals in the economy.