Performing Substantive Procedurprior to Year-End, in the Absence of Specific

question 48

Multiple Choice

Performing substantive procedurprior to year-end, in the absence of specific effective controls, may be acceptable when:

• A) the auditor is able to conclude overall that the client's control environment is effective.
• B) the likelihood of errors or fraud is high.
• C) the likelihood of errors or fraud is low.
• D) both a and c.

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Definitions:

Environmental Costs

The negative impacts on the environment, including pollution, resource depletion, and loss of biodiversity, often not reflected in the market price of goods and services.

Health Costs

The expenses associated with maintaining, improving, or monitoring health, including prevention, diagnosis, treatment, and rehabilitation.

Natural Resources

Materials or substances that occur in nature and can be used for economic gain, such as minerals, forests, water, and fertile land.

Ecosystems

Communities of living organisms interacting with each other and their physical environment, functioning as a unit.