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:

Preparation

The process of making ready or being made ready for use or consideration, involving planning and organization.

Unconscious Phase

A period during which an individual is not fully aware of their actions or motives, often discussed in the context of psychological processes.

Gathering Ideas

The process of collecting diverse thoughts, suggestions, or concepts for consideration or future action.

Creativity Defined

refers to the ability to generate new and original ideas, approaches, or solutions, often characterized by innovation and imagination.