If the Auditor's Assessment of an Internal Control Is That

question 12

Multiple Choice

If the auditor's assessment of an internal control is that it is effective,what is the effect on the amount of direct testing performed by the auditor?

• A)Increase in direct testing.
• B)decrease in direct testing
• C)No change in direct testing.
• D)Direct testing is not needed.

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Definitions:

School Sports Teams

Organized groups of students who represent their school in various sports competitions.

Long-term Fixed Pricing

A pricing strategy where the seller sets a specific price for a product or service that does not change over a long period, offering stability to both the seller and the buyer.

McClelland's Three Needs

A theory of motivation that highlights three primary needs influencing human behavior: the need for achievement, the need for affiliation, and the need for power.

Maslow's Hierarchy

a psychological theory proposed by Abraham Maslow that categorizes human needs into five levels, from basic physiological needs to self-actualization.