What Information Does an Auditor Get from an Internal Control

question 34

Multiple Choice

What information does an auditor get from an internal control test?

• A)the auditor learns if the control is operating effectively
• B)the auditor learns if the system of controls is operating effectively
• C)the auditor learns if the control is present
• D)the auditor learns if a system of internal controls is present

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Definitions:

Marginal Product Data

Information related to the additional output generated by employing one more unit of a particular input.

Profit-Maximizing

The process or strategy of adjusting output to achieve the highest possible profit, taking into account revenue and costs.

Competitive Market

is a market structure characterized by numerous buyers and sellers, free entry and exit, and products that are close substitutes, leading to price competition.

Profit-Maximizing Level

The point at which a company can achieve the highest profit by adjusting production levels, where marginal revenue equals marginal cost.