Performing Substantive Procedures Prior to Year End, in the Absence

question 9

Multiple Choice

Performing substantive procedures prior to year end, in the absence of specific effective controls, may be acceptable when

• A) the auditor is able to conclude overall that the client's control environment is effective.
• B) the likelihood of errors or fraud is high.
• C) the likelihood of errors or fraud is low.
• D) both a and c

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Definitions:

Eddy Currents

Circulating currents induced within conductors by a changing magnetic field, often leading to energy loss.

Insulation

Material used to prevent the passage of electricity, heat, or sound from one area or substance to another by providing a barrier or covering.

Embargo Act 1807

A law passed by the U.S. Congress prohibiting American ships from trading in foreign ports, aiming to coerce Britain and France into respecting U.S. neutrality during their wars.

Great Britain

A geopolitical term referring to the island that comprises England, Scotland, and Wales.