If Tests of Controls Indicate That Internal Controls Are Not

question 67

Multiple Choice

If tests of controls indicate that internal controls are not as effective as originally assessed, the auditor will

• A) decrease assessment of control risk.
• B) increase assessment of detection risk.
• C) place less reliance on substantive procedures.
• D) none of the above

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Definitions:

Substance

The essential reality of a thing or things that underlies the various properties and changes of properties. Its most common definitions: “that which is independent and can exist by itself”; “the essence of a thing which does not and cannot change.” In traditional metaphysics, substance is the same as “ultimate reality,” and the study of substance is that branch of metaphysics that studies reality—namely, ontology.

Independent

Describes a state or condition of being free from outside control or not depending on something else.

Cosmology

The study of such questions as how the universe came into being, the nature of space and time, and the dimensions of the universe.

Ontology

A branch of metaphysics concerned with the nature and relations of being or existence.