An Auditor Is Examining a Nonpublic Company's Inventory Procurement System

question 80

Multiple Choice

An auditor is examining a nonpublic company's inventory procurement system and has decided to perform tests of controls. Under which of the following conditions should the auditor perform tests of controls?

• A)Significant weaknesses were found in the company's internal control.
• B)The auditor hopes to reduce the amount of work to be done in assessing inherent risk.
• C)The auditor believes that testing the controls could lead to a reduction in overall audit time and cost.
• D)Tests of controls are always performed when the auditor begins to assess control risk.

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Definitions:

Transcultural Nursing

A nursing practice that focuses on understanding and respecting the cultural differences of patients to provide effective and sensitive care.

Cultural Care

Care that respects and takes into account the cultural beliefs, practices, and needs of individuals or communities.

Ethnonursing

A qualitative research method focusing on the cultural aspects of nursing practice and patient care.

Covert Knowledge

Hidden or secret knowledge not openly acknowledged or displayed.