After Obtaining an Understanding of the Internal Control System and Assessing

question 24

Multiple Choice

After obtaining an understanding of the internal control system and assessing control risk,an auditor decided not to perform additional tests of controls.The auditor most likely concluded that ________.

• A)the additional evidence to support a further reduction in control risk was not cost-beneficial
• B)the assessed level of inherent risk exceeded the assessed level of control risk
• C)the internal control system was properly designed and justifiably may be relied on
• D)the evidence obtainable through tests of controls would not support an increased level of control risk

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Definitions:

Secure Attachment

A form of attachment characterized by a positive view of the self and others, leading to healthy, trusting, and long-lasting relationships.

Individualistic Cultures

Cultures that emphasize personal goals, autonomy, and individual achievement over group goals.

Community Cooperation

The collaborative efforts of individuals within a community to achieve common goals or solve collective problems.

Practical Virtues

The attributes or characteristics deemed useful and beneficial in daily life for effective and ethical interaction.