If an Auditor Believes That the Audit Client's Internal Controls

question 73

Multiple Choice

If an auditor believes that the audit client's internal controls are effective, the approach she/he would take in the conduct of the audit is

• A) to place emphasis on testing account balances.
• B) to place her/his focus on tests of controls and further tests of transactions and balances.
• C) a substantive approach.
• D) none of the above

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Definitions:

Germ Layer

One of the primary layers of cells (endoderm, mesoderm, ectoderm) in the early embryo that gives rise to all tissues and organs.

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, giving rise to the outer layer of skin, central and peripheral nervous systems, eyes, inner ear, and many connective tissues.

Endoderm

In early embryonic development, the most internal cell or tissue layer that evolves into the lining of the digestive and respiratory systems.

Metencephalon

Second most posterior division of the embryonic brain; becomes the pons and cerebellum in the adult.