Which Statement Is Correct Concerning the Relevance of Various Types

question 77

Multiple Choice

Which statement is correct concerning the relevance of various types of controls to a financial statement audit?

• A)An auditor may ordinarily ignore the consideration of controls when a substantive audit approach is used.
• B)Controls over the reliability of financial reporting are ordinarily most directly relevant to an audit,but other controls may also be relevant.
• C)Controls over safeguarding assets and liabilities are of primary importance,while controls over the reliability of financial reporting may also be relevant.
• D)All controls are ordinarily relevant to an audit.

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Definitions:

Bystander Effect

A phenomenon identified in social psychology that indicates people are less willing to help a victim when they are not alone, but in the company of others.

Darley And Latané

Psychologists known for their research on the bystander effect, which examines why individuals do not always help others in distress when other people are present.

Critical Thinking

The process of actively analyzing, interpreting, synthesizing, and evaluating information to reach a conclusion.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior.