If There Have Been No Changes to a Control That

question 26

Multiple Choice

If there have been no changes to a control that a previous audit has found to be working effectively, ________.

• A) an auditor must still test the controls and not place reliance on the prior year's testing
• B) an auditor must still test the controls but not to the same extent as the prior year's testing
• C) an auditor can rely on the prior year's work and not test controls in the current year
• D) an auditor can rely on the prior year's work but should test the controls every few years

Recognize the role of self-awareness and self-regulation in listening.

Understand and apply analytical and critical listening in varying situations for effective communication.

Understand the concept of environmental cues in association with rewards.

Comprehend the factors motivating escape behavior and the approach towards reward.

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Definitions:

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using shareholders’ funds to generate profit.

Debt Ratio

A financial metric that assesses a firm's level of indebtedness by dividing its total liabilities by its total assets.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by stockholders' equity.

Net Income

The company's net earnings following the subtraction of all costs and taxes from its income.