The Purpose of Tests of Controls Is to Determine Whether

question 45

Multiple Choice

The purpose of tests of controls is to determine whether ________.

• A)internal control policies and procedures are working as prescribed
• B)substantive testing can be kept to a minimum
• C)errors and irregularities are prevented or detected in a timely manner
• D)the auditor has an understanding of the control system

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Definitions:

Strategic Plans

Strategic plans are long-term, high-level plans made by an organization to achieve specific goals, outlining the organization's mission, vision, and how it will differentiate itself from competitors.

Incremental Plans

Planning methodology that involves making small or minor updates or changes instead of large, comprehensive shifts.

Tactical Plans

Short-term actions and strategies designed to achieve specific parts of a company's overall strategic plan.