At the End of Internal Control Testing,the Auditor May Conclude

question 52

Multiple Choice

At the end of internal control testing,the auditor may conclude that

• A)internal controls are effective in preventing or detecting misstatements for the accounts in the business process
• B)internal controls are effectively designed to prevent or detect misstatements for the significant accounts in the business process
• C)internal controls are not effectively designed for the significant accounts in the business process
• D)internal controls are not effective for the relevant assertions tested for the significant accounts in the business process

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Definitions:

Amortization of Discount

The gradual reduction of a bond discount over its life, affecting the issuer's interest expense and balance sheet.

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus any depreciation, amortization, or impairment costs.

Cost of Retirement

The expenses associated with an individual's retirement, including savings and investments needed to maintain one's standard of living.