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If an Auditor Concludes That Internal Controls Are Likely to Be

question 72

Multiple Choice

If an auditor concludes that internal controls are likely to be effective, the preliminary assessment of control risk can be reduced, leading to which of the following impacts on the acceptable risk of incorrect acceptance?


Definitions:

Oral Contract

An agreement between parties spoken and agreed upon verbally, rather than in written form; although legally binding, it may be harder to prove.

Statute of Frauds

A legal concept that requires certain types of contracts to be executed in writing and signed by the parties involved to be enforceable.

Oral Contract

An agreement between parties that is spoken and not written, yet it is legally binding.

Employment Agreement

A contractual relationship between an employer and an employee outlining the terms of employment, including duties, responsibilities, and compensation.

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