Auditors Use a Re-Performance Procedure

question 63

Multiple Choice

Auditors use a re-performance procedure

• A) only when testing controls.
• B) only during the risk assessment phase.
• C) only when conducting substantive testing.
• D) when testing controls and when conducting substantive testing.

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Definitions:

Principal-Agent Problem

A dilemma in economics occurring when one party (the agent) is able to make decisions and/or take actions on behalf of, or that impact, another party (the principal).

Profit-Sharing Plans

A company program that gives employees a share in the profits of the company.

Residual Claimants

Individuals or entities entitled to a share of a company's profits after all obligations have been met.

Team Production

A production process in which employees work together under the supervision of the owner or the owner’s representative.