In an Integrated Audit the Auditor Must Test the Controls

question 4

Multiple Choice

In an integrated audit the auditor must test the controls of all material processes of the client unless

• A)substantive testing would be more effective and efficient.
• B)the controls were in place last year.
• C)there have been changes to the controls during the year.
• D)the design of the control would not prevent material misstatements.

---

Definitions:

Customers

Individuals or businesses who purchase goods or services from another entity.

Expected Value

The average outcome of a random variable, calculated as the sum of all possible values each multiplied by their respective probability of occurrence.

Raffle Tickets

Tickets sold as a means to raise money for a cause, with the chance of winning prizes.

Binomial Distribution

a probability distribution describing the number of successes in a fixed number of independent Bernoulli trials, with a constant probability of success.