Which of the Following Statements Is True

question 41

Multiple Choice

Which of the following statements is true?

• A)Testing of controls is the most cost-efficient way of designing each audit.
• B)Substantive testing is the most cost-efficient way of designing each audit.
• C)As the work of testing of controls increases,the cost of substantive work increases.
• D)There is a point where further testing of controls becomes more expensive than performing substantive tests.

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Definitions:

Conscientiousness

Refers to a personality trait characterized by organization, responsibility, and carefulness.

Factor Analysis

An analytical method which aims to detect foundational factors or variables explaining the correlation patterns among observed variables.

Heredity

The passing of traits or characteristics from parents to offspring through genes.

Environmental-Mold Trait

A characteristic or tendency believed to be shaped by one's surroundings and experiences.