Which of the Following Best Describes the Concept of Key

question 4

Multiple Choice

Which of the following best describes the concept of key item testing?

• A) the selection of items that are grouped together within the population of items available
• B) the proportion of items tested that did not conform to the client's prescribed control procedure
• C) focus is on selecting the largest transactions within a balance to obtain coverage of the total
• D) the selection of items that an auditor believes should be included in the sample for testing

---

Definitions:

General Agreement on Tariffs and Trade

An international trade treaty designed to boost economic recovery by reducing quotas and tariffs.

Free Trade Zones

Designated areas within a country where goods can be imported, handled, manufactured, and exported without direct intervention from customs authorities.

Mercosur

A South American trade bloc established to promote free trade and fluid movement of goods, people, and currency among its member countries.

Trans-Pacific Partnership

A trade agreement among multiple Pacific Rim countries aimed at deepening economic ties, reducing tariffs, and fostering trade to boost growth.