When Control Risk Is High the Audit Strategy Is To

question 47

Multiple Choice

When control risk is high the audit strategy is to:

• A)assume the client's management is dishonest and immediately report them to ASIC
• B)increase reliance on tests of controls and reduce reliance on substantive testing of transactions and account balances.
• C)do little or no tests of controls and increase reliance on substantive testing of transactions and account balances
• D)refuse to continue with the remainder of the audit due to the high risk of fraud

Understand the linguistic relativity hypothesis and its implications on cognition.

Recognize the importance of child-directed speech in language development.

Understand the role and responsibilities of accountants within an organization.

Identify the different types of accounting activities and their significance to the business.

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Definitions:

Interrelations

The ways in which two or more things or phenomena are connected and affect each other.

Focus of Attention

The allocation of cognitive resources towards a specific stimulus or task at any given time.

Psychologists

Psychologists are professionals who study mental processes, behavior, and the psychological aspects of human experience.

Culture

The social behavior, norms, knowledge, beliefs, arts, laws, customs, capabilities, and habits of the members of a society or community.