A substantive strategy differs from a reliance strategy in that a substantive strategy includes:
A. extra tests of controls.
B. increased emphasis on verbal representations from management.
C. increased implementation of detailed tests of transactions and balances.
D. setting control risk at a minimum level.
Answer: C
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Answer the following statement true (T) or false (F)
The essence of the fixed amount requirement is that a holder of an instrument can calculate the
payment required from the face of the instrument. Indicate whether the statement is true or false
Which compensation approach is the most cost effective?
a) Host country approach b) Home country approach c) Global approach d) None of the above
Answer the following statement(s) true (T) or false (F)
1. Both the Model Code and the Ethics 2000 version of the Model Rules require that legal fees be reasonable. 2. One of the factors listed in the Model Code and Model Rules that helps determine whether a fee is reasonable or excessive is the fee customarily charged in the locality for similar legal services. 3. There are certain overhead activities performed in a firm that are generally considered nonbillable activities, because the lawyer’s fee should already cover overhead activities. 4. Many states, but not the federal government, place caps on certain types of legal fees. 5. Double billing and bill padding are synonyms for the same activity.