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A Medium-Sized, Nonpublic Company Has Few Effective Controls and Significant

question 35

True/False

A medium-sized, nonpublic company has few effective controls and significant inherent risks. The auditor in this situation should emphasize tests of details and balances and substantive tests of transactions; no substantive analytical procedures should be performed in this situation by the auditor.


Definitions:

Marital Stability

The degree to which a marriage remains free from serious conflicts and the likelihood of it enduring over time.

Intact

Remaining undamaged or unaltered, often used to describe objects, structures, or relationships that have not been broken or modified.

Total Marriage

The partners participate in each other’s lives at all levels and have little tension or unresolved hostility.

Tension

A state of mental or emotional strain resulting from challenging or demanding circumstances.

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