The evidence mix which the auditor chose in each of four different audits is shown below:

Amount of testing: E = extensive M = medium S = small N = none
In which audit did the client company have sophisticated internal controls and in which audit did the client have insufficient controls?
A) sophisticated in #2 and insufficient in #3
B) sophisticated in #1 and insufficient in #2
C) sophisticated in #1 and insufficient in #3
D) sophisticated in #4 and insufficient in #2

Question

The evidence mix which the auditor chose in each of four different audits is shown below:

Amount of testing: E = extensive M = medium S = small N = none
In which audit did the client company have sophisticated internal controls and in which audit did the client have insufficient controls?
A) sophisticated in #2 and insufficient in #3 
B) sophisticated in #1 and insufficient in #2 
C) sophisticated in #1 and insufficient in #3 
D) sophisticated in #4 and insufficient in #2

Quizplus · Accepted Answer

In audit #1, the auditor chose an extensive evidence mix, which suggests that the client company had sophisticated internal controls. In contrast, in audit #3, the auditor chose a small amount of testing, indicating that the client company had insufficient internal controls. Therefore, choice C is the correct answer.

The Evidence Mix Which the Auditor Chose in Each of Four