If an Auditor Decides That a Client Has Internal Controls

question 38

Multiple Choice

If an auditor decides that a client has internal controls that can reduce the likelihood of material misstatement for an identified risk, the auditor will

• A) test those controls.
• B) qualify the audit report.
• C) adopt a substantive approach.
• D) not test those controls.

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Definitions:

Prerogative

A special right or privilege exclusive to a particular individual or class.

Venue

The geographical location or court where a case is heard, often chosen based on where the parties live or where an event occurred.

Assignment

A transfer of property or some right or interest.

Motion To Dismiss

The tenancy that exists when the landlordand tenant agree that rent will be paid in regular successive intervals until notice to terminate is given but do not agree on a