If the Tests of Controls Confirm the Auditor's Preliminary Evaluation

question 33

Multiple Choice

If the tests of controls confirm the auditor's preliminary evaluation of controls,the planned substantive audit procedures are:

• A)reduced.
• B)increased.
• C)not modified.
• D)changed.

---

Definitions:

Financial Statements

Papers that offer a summary of a firm's financial status, encompassing the balance sheet, income statement, and cash flow statement.

Owner's Equity Statement

A financial statement showing the changes in the equity of the company’s owners over a reporting period.

Net Income

The overall income a company retains following the deduction of all costs, such as taxes and operational expenses, from its gross revenue.

Assets

Resources owned by a company from which future economic benefits are expected to flow to the entity.