If the Auditor Chooses Not to Test Internal Controls

question 62

Multiple Choice

If the auditor chooses not to test internal controls

• A)it is because the client prefers substantive testing
• B)the auditor is still required to obtain an understanding of internal control relevant to the audit
• C)it is because management is not relying on internal controls
• D)the auditor believes that management has a more efficient method of gathering evidence

---

Definitions:

Marginal Product

The additional output resulting from the use of one more unit of a production input, holding other inputs constant.

Total Product

The overall quantity of output produced by a firm from a given amount of inputs within a certain period.

Quality Tools

Instruments or techniques used to enhance product or service quality through problem-solving, process analysis, and improvement strategies.

Short Run

The short run in economics is a time period during which at least one input, such as plant size, is fixed and cannot be changed by the firm.