An Audit Strategy Will Include Increased Reliance on Tests of Controls

question 46

Multiple Choice

An audit strategy will include increased reliance on tests of controls when

• A) inherent risk and control are high.
• B) inherent risk and control risk are low.
• C) the auditor believes there is a high risk that their client's internal controls will not prevent or detect material misstatements.
• D) there is a high susceptibility of assertions to material misstatements.

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Definitions:

Pop Quizzes

Surprise tests given without prior warning, typically used to assess students' understanding of recent topics or to encourage keeping up with course material.

Unpredictable Times

Unpredictable times refer to periods in which future events or outcomes are uncertain, often making planning and decision-making more difficult.

B.F. Skinner

An American psychologist best known for his work in behaviorism and the development of the theory of operant conditioning.

Human Behavior

The array of every physical action and observable emotion associated with individuals, as well as the human race as a whole.