In most audits of large entities, control risk assessment contributes to audit efficiency, whichmeans thata. The cost of substantive procedures will exceed the cost of control evaluation work.b. Auditors will be able to reduce the cost of substantive procedures by an amount morethan the control evaluation costs.c. The cost of control evaluation work will exceed the cost of substantive procedures.d. Auditors will be able to reduce the cost of substantive procedures by an amount less thanthe cost of tests of controls
In most audits of large entities, control risk assessment contributes to audit efficiency, whichmeans thata. The cost of substantive procedures will exceed the cost of control evaluation work.b. Auditors will be able to reduce the cost of substantive procedures by an amount morethan the control evaluation costs.c. The cost of control evaluation work will exceed the cost of substantive procedures.d. Auditors will be able to reduce the cost of substantive procedures by an amount less thanthe cost of tests of controls
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In most audits of large entities, control risk assessment contributes to audit efficiency, which
means that
a. The cost of substantive procedures will exceed the cost of control evaluation work.
b. Auditors will be able to reduce the cost of substantive procedures by an amount more
than the control evaluation costs.
c. The cost of control evaluation work will exceed the cost of substantive procedures.
d. Auditors will be able to reduce the cost of substantive procedures by an amount less than
the cost of tests of controls
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