The Factors to Consider When Deciding the Extent of Testing

question 17

Multiple Choice

The factors to consider when deciding the extent of testing of controls include which of the following?

• A)How often the control is performed
• B)The persuasiveness of the evidence produced by the control
• C)The degree to which the auditor intends to rely on the control as a basis for limiting their substantive tests
• D)All of the above

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Definitions:

Assignment

The transfer of rights, property, or obligations from one party to another.

Negotiation

The process of discussing something formally to reach an agreement or compromise between parties.

Fraudulent

Fraudulent activities involve deceit or trickery, intentionally carried out for personal gain or to cause financial or personal harm to others.

Demand Instrument

A financial document that requires payment of the amount specified on it upon demand by the holder.