After Finishing the Review Phase of the Study and Evaluation

question 26

Multiple Choice

After finishing the review phase of the study and evaluation of internal control in an audit, the auditor should perform tests of controls on:

• A) those controls that the auditor wants and plans to rely upon.
• B) those controls in which material weaknesses were identified.
• C) those controls that have a material effect upon the financial statement balances.
• D) a random sample of the controls that were reviewed.

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Definitions:

Country's Currency

The legal tender issued by a country's government, used as a medium of exchange within its economy.

Income Distribution

The way in which total income is shared amongst the population or different groups within society.

Per Capita Incomes

The average income earned per person in a certain area or country, calculated by dividing the area's total income by its total population.

Purchasing Power

The capacity to buy goods and services, often determined by income, savings, and the current prices of goods and services.