Why Must the Auditor Obtain Evidence to Support the Conclusion

question 15

Essay

Why must the auditor obtain evidence to support the conclusion that controls are effective, even if management controls appear to be effective? How is this done?

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Definitions:

Balanced-Budget Amendment

A proposed amendment to the U.S. Constitution requiring the federal budget to be in balance, with expenditures not exceeding revenues.

Capital Gains Tax

A tax on the profit realized on the sale of a non-inventory asset that was higher in value than the purchase price, most commonly assessed on real estate, stocks, and bonds.

Ultra-Progressive

Describes individuals or movements that advocate for radical reforms and changes, often towards inclusivity, equality, and environmental sustainability, beyond conventional progressive stances.

Perjury

The criminal act of lying or making misrepresentations under oath, especially in a court of law, punishable as a serious offense because it undermines the judicial process.