Each of the Following Might,by Itself,form a Valid Basis for an Auditor

question 52

Multiple Choice

Each of the following might,by itself,form a valid basis for an auditor to reduce substantive testing except for the:

• A) Difficulty and expense involved in testing a particular item.
• B) Assessment of control risk at a low level.
• C) Low inherent risk involved.
• D) Relationship between the cost of obtaining evidence and its usefulness.

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Definitions:

Partnership Capital

The total amount of resources contributed by partners to a partnership for the purpose of starting or expanding the business.

Partner's Contribution

Refers to the resources (capital, property, expertise) a partner brings into a partnership.

Corporation

A legal entity recognized by law as a separate entity from its owners with its own rights, liabilities, and obligations.

Board of Directors

A group of individuals elected to represent shareholders and govern the corporation's affairs and decision-making processes.