If the Auditor Initially Considers the Internal Control Environment Risky

question 37

Multiple Choice

If the auditor initially considers the internal control environment risky, but later during the audit concludes it to be adequate as a result of substantive procedures, the auditor:

• A) should reflect the new assessment in its report on ICFR.
• B) should increase substantive testing.
• C) should issue a new opinion on the financial statements.
• D) should issue a new opinion on the ICFR.

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Definitions:

Soft Spots

Areas on an infant's skull where the bones have not yet fused, formally known as fontanelles, allowing the head to be flexible during birth and growth.

Tough Cartilage

A type of strong, flexible connective tissue found in various parts of the body, such as joints, acting as a cushion and providing structural support.

Juvenile Rheumatoid Arthritis

A type of arthritis that affects children under the age of 16, characterized by inflammation, pain, and stiffness in joints.

Neonatal Jaundice

A common condition in newborns characterized by yellowing of the skin and eyes due to a high level of bilirubin, a pigment in the blood.