Si: The results of tests of controls are used to assess control risk, which is crucial in assessing allowable detection risk, the basis for judging the extent of year-end substantive tests of details. §2: Compliance tests are audit procedures that detect material misstatements or that identify disclosures likely to contain material misstatements, $3: Although useful for describing uncomplicated systems, narratives may be inappropriate when a system is complex or frequently revised, A: Ifall statements are correct. B-If only one statement is correct. C- If only two statements are correct. D- If all statements are incorrect
Si: The results of tests of controls are used to assess control risk, which is crucial in assessing allowable detection risk, the basis for judging the extent of year-end substantive tests of details. §2: Compliance tests are audit procedures that detect material misstatements or that identify disclosures likely to contain material misstatements, $3: Although useful for describing uncomplicated systems, narratives may be inappropriate when a system is complex or frequently revised, A: Ifall statements are correct. B-If only one statement is correct. C- If only two statements are correct. D- If all statements are incorrect
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Si: The results of tests of controls are used to assess control risk, which is crucial in assessing allowable detection risk, the basis for judging the extent of year-end substantive tests of details.
§2: Compliance tests are
$3: Although useful for describing uncomplicated systems, narratives may be inappropriate when a system is complex or frequently revised,
A: Ifall statements are correct.
B-If only one statement is correct.
C- If only two statements are correct.
D- If all statements are incorrect.
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