Where an Auditor Concludes That the Audit Client's Systems of Internal

question 56

Multiple Choice

Where an auditor concludes that the audit client's systems of internal controls are ineffective, he/she will

• A) conclude that the client's system of internal controls can be relied upon to detect potential material misstatements.
• B) conclude that the client's system of internal controls cannot be relied upon to detect potential material misstatements.
• C) reduce the amount of reliance to be placed on substantive tests.
• D) project the misstatements to the entire population.

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Definitions:

Away From

A direction or movement that leads an object or person to increase distance from a specific point or location.

Underdevelopment

A condition characterized by a lack of economic growth, inadequate social services, and poverty, often referring to countries with a low standard of living and industrial capacity.

Tissue

A group of similar cells and their extracellular matrix that together perform specific functions within an organism.

Organ

A part of the body that performs a specific function or functions, such as the heart, liver, or lungs.