You Are Performing the Audit of Jenkins and Company

question 117

Multiple Choice

You are performing the audit of Jenkins and Company. Your tests of controls and tests of transactions for accounts payable demonstrate that the controls are operating effectively. This would normally allow you to

• A) eliminate the need for substantive testing of balances for accounts payable.
• B) reduce the need for substantive testing of balances for accounts payable.
• C) reduce control tests in other transactions cycles.
• D) increase the need for substantive testing of balances for accounts payable.

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Definitions:

Neuritis

Inflammation of a nerve or nerves, often causing pain and loss of function.

Inflammation

A biological response to harmful stimuli, characterized by redness, heat, swelling, and pain as part of the body's effort to heal itself.

Nerve Tract

A bundle of nerve fibers (axons) within the central nervous system connecting one area to another, to transmit signals.

Sensation Loss

The partial or total loss of the ability to feel or perceive stimuli in specific areas of the body.