Which of the Following Statements Best Describes Why an Auditor

question 39

Multiple Choice

Which of the following statements best describes why an auditor would use only substantive procedures to evaluate specific relevant assertions and risks?

• A)The relevant internal control components are not well documented.
• B)The internal auditor already has tested the relevant controls and found them effective.
• C)Testing the operating effectiveness of the relevant controls would not be efficient.
• D)The cost of substantive procedures will exceed the cost of testing the relevant controls.

Recognize the difference between strategic, tactical, and operational planning.

Acknowledge the importance of implementation in realizing plans.

Understand the concept of stretch goals and their impact on performance.

Be aware of the skills and activities that enhance time management within the context of planning.

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Definitions:

Rationed

The controlled distribution of scarce resources, goods, or services.

Market Setting

Refers to the competitive environment in which businesses operate, influenced by supply and demand dynamics.

Human Resources

The abilities, skills, and health of human beings that contribute to the production of both current and future output. Investment in training and education can increase the supply of human resources.