If an Auditor Decidthat a Client Has Internal Controls That

question 18

Multiple Choice

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

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

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Definitions:

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for higher cognitive functions, such as reasoning, planning, parts of speech, movement, emotions, and problem solving.

Intimacy

The sense of closeness and attachment resulting from a deep understanding and mutual affection between individuals, often developed through sharing personal thoughts, feelings, and experiences.

Emotionally Close Relationships

Bonds between individuals characterized by deep affection, trust, mutual support, and strong emotional connections.

Pubertal Development

The physical changes during adolescence that lead to sexual maturity, including growth spurts and development of secondary sexual characteristics.