Which of the Following Is Not True Regarding Appropriate Tests

question 25

Multiple Choice

Which of the following is not true regarding appropriate tests of controls?

• A)The auditor selects controls that are important to the auditor's conclusion about whether the organization's controls adequately address the assessed risk of material misstatement for the relevant debt and equity accounts.
• B)The client's audit committee selects controls that are important to the auditor's conclusion about whether the organization's controls adequately address the assessed risk of material misstatement for the relevant debt and equity accounts.as of the client's year end.
• C)The auditor will select both entity-wide and transaction controls for testing.
• D)If the auditor wants to rely on controls for the financial statement audit,the auditor would test the operating effectiveness of those controls throughout the year.

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Definitions:

Foreign Exchange Markets

A global decentralized market for trading currencies, facilitating international trade and investment by enabling currency conversion.

Gold Standard

A financial regime in which the value of a nation's currency or banknotes is directly tied to the value of gold.

Balance of Payments

A financial statement summarizing a country's transactions with the rest of the world over a specified period, including trade, investment, and financial transfers.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.