Tests of Controls Provide Audit Evidence for Both the ICFR

question 36

Multiple Choice

Tests of controls provide audit evidence for both the ICFR, and financial statement components of a(n) :

• A) evidential inquiry.
• B) inquiry procedure.
• C) test of control.
• D) efficient audit.
• E) integrated audit.

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Definitions:

Federally Funded

Financially supported or subsidized by a national government.

Low Income

The condition of earning at or below a specified threshold of income, often used to determine eligibility for certain social services or tax benefits.

Double Indemnity

An optional provision in life insurance policies that provides that the insurer will pay double the amount due to a beneficiary if the insured dies from accidental causes.

Beneficiaries

Individuals or entities entitled to receive benefits or assets under the terms of a will, trust, insurance policy, or other financial instrument.