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:

Correlational Research

A type of non-experimental research method in which a researcher measures two variables, understands and assesses the statistical relationship between them without any causal assumption.

Independent Variables

Factors in an experiment that are deliberately altered to test their impact on the variables being measured.

Manipulating Variables

The process of changing one or more variables in an experiment to observe the effects on other variables.

Double-Blind Procedure

A research method used to prevent bias, where neither the participants nor the experimenters know who is receiving a particular treatment.