The Final Phase of an Audit Includes Which of the Following

question 40

Multiple Choice

The final phase of an audit includes which of the following:

• A) performing substantive tests of account balances.
• B) gaining an understanding of the client's internal control system.
• C) confirming the terms of the audit engagement with the auditor.
• D) determining whether the audit evidence obtained is sufficient and appropriate to reduce the risk of material misstatements in the financial report to an acceptably low level.

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Definitions:

Early Afternoon Movie

A film screening that takes place in the early part of the afternoon, typically characterized by less audience and a quieter viewing experience.

Cognitive Miser

A theory suggesting that humans tend to conserve mental effort wherever possible, often leading to simplified and heuristic thinking processes.

Extra Thinking

The act of engaging in thought processes beyond what is necessary or typical, often leading to overanalysis or excessive planning.

Automatic Processing

A type of cognitive processing that occurs quickly, without conscious thought, often based on learned habits or routines.