After Considering a Client's Internal Controls, an Auditor Has Concluded

question 17

Multiple Choice

After considering a client's internal controls, an auditor has concluded that it is well designed and is functioning as intended. Under these circumstances the auditor would most likely:

• A) perform tests of controls to the extent outlined in the audit program.
• B) determine the control procedures that should prevent or detect errors and irregularities.
• C) not increase the extent of predetermined substantive tests.
• D) determine whether transactions are recorded to permit preparation of financial statements in conformity with generally accepted accounting principles.

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Definitions:

Neuroticism

Neuroticism is a personality trait characterized by a tendency to experience negative emotions such as anger, anxiety, or depression more frequently and intensely than others.

Agreeableness

One of the five major dimensions of personality, characterized by attributes such as kindness, empathy, and a willingness to cooperate and get along with others.

Extraversion

A personality trait characterized by outgoingness, high energy, and positive emotions; extraverts tend to enjoy being around people.

Biology

the scientific study of life and living organisms, encompassing their structure, function, growth, evolution, and distribution.