Which of the Following Is Not a Valid Basis for Omitting

question 68

Multiple Choice

Which of the following is not a valid basis for omitting an audit test in forming an opinion on the clients financial statements?

• A)The difficulty and expense involved in testing a particular item
• B)The relative risk involved
• C)The degree of reliance on the relevant internal controls
• D)The relationship between the cost of obtaining evidence and its usefulness

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Definitions:

Earned Income Tax Credit

A refundable tax credit for low- to moderate-income working individuals and families, designed to encourage and reward work.

Negative Income Tax

A tax system where people earning below a certain amount receive supplemental pay from the government instead of paying taxes.

Government Intervention

Actions taken by government to influence or regulate economic activity, often to correct market failures and promote welfare.

Negative Income Tax

A system of income support that provides individuals with an income guarantee. If an individual's earnings fall below a certain level, they receive supplemental pay from the government rather than paying taxes.