Once the Auditor Concludes That Internal Controls Are Operating Effectively

question 110

True/False

Once the auditor concludes that internal controls are operating effectively in the acquisition and the payment cycle, the verification of accounts payable should require little audit effort.

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Definitions:

Belief Perseverance

Belief perseverance is the psychological phenomenon where individuals maintain a belief despite new information or evidence that contradicts or disproves it.

Algorithms

A set of rules or a process followed in calculations or problem-solving, especially by a computer.

Intuition

The ability to understand or know something immediately, without the need for conscious reasoning; a 'gut feeling.'

Quick Decisions

The ability to make choices rapidly without extensive deliberation, often necessary in high-pressure or emergency situations.