In Most Audits of Large Entities,control Risk Assessment Contributes to Audit

question 72

Multiple Choice

In most audits of large entities,control risk assessment contributes to audit efficiency,which means that

• A) The cost of substantive procedures will exceed the cost of control evaluation work.
• B) Auditors will be able to reduce the cost of substantive procedures by an amount more than the control evaluation costs.
• C) The cost of control evaluation work will exceed the cost of substantive procedures.
• D) Auditors will be able to reduce the cost of substantive procedures by an amount less than the cost of tests of controls.

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Definitions:

General Adaptation Syndrome

A theory by Hans Selye that describes the three stages of response to stress: alarm, resistance, and exhaustion.

Catharsis

The process of releasing and thereby providing relief from strong or repressed emotions, often through art, dialogue, or reflection.

Self-Esteem

A person's personal and subjective assessment of their own value in terms of emotions.

Individualism

A principle favoring freedom of action for individuals over collective or state control.