The Text Described Seven Types of Audits Common in Accounting

Multiple Choice

The text described seven types of audits common in accounting practice.Which of the following statements about them is most true?

A) An adverse report in a financial statement audit is evidence that an investigative audit is needed.
B) Expectancy theory can be useful in many types of audits.
C) Both an adverse report in a financial statement audit is evidence that an investigative audit is needed and expectancy theory can be useful in many types of audits are true.
D) Neither an adverse report in a financial statement audit is evidence that an investigative audit is needed nor expectancy theory can be useful in many types of audits is true.