When the Auditor Decides to Include Controls Testing in Their

question 83

Multiple Choice

When the auditor decides to include controls testing in their audit strategy, they select those controls that

• A) are the easiest to test.
• B) provide the most efficient and effective audit evidence.
• C) provide no assurance that the controls operated effectively throughout the period of reliance.
• D) provide the least efficient and effective audit evidence.

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Definitions:

Total Revenue

The total income received from sales of goods or services before any expenses are subtracted.

Elastic

A term used in economics to describe a situation where the quantity demanded or supplied of a good is sensitive to changes in its price.

Price Elasticity

An indicator showing the demand for a good's responsiveness to its price alterations.

Consumer Purchases

Transactions in which individuals buy goods or services for personal use or consumption.