Which of the Following Statements Is Correct

question 41

Multiple Choice

Which of the following statements is correct?

• A) Tests of account balances can often provide evidence about the continued functioning of controls.
• B) An ineffective entity-level control environment may allow the auditor to limit their tests of controls to enquiry and observation.
• C) Auditors do not need to investigate any control exceptions identified during their testing.
• D) Tests of account balances never provide evidence about the continued functioning of controls.

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Definitions:

Concentration Differences

Variations in the amount of a particular substance within a given volume, leading to a gradient that can cause diffusion.

Sodium-Potassium Pump

A membrane-bound ATPase enzyme that pumps sodium out of cells while moving potassium into cells, crucial for maintaining cellular ion balance and membrane potential.

Plasma Membrane

A bi-layer of lipids and proteins that surrounds a cell, controlling the passage of substances in and out of the cell.

Membrane Potential

The electrical potential difference across a cell's plasma membrane, vital for the conduction of nerve impulses, muscle contraction, and transport processes.