The Auditor Considers Internal Control by 4 Steps

question 63

Multiple Choice

The auditor considers internal control by 4 steps. What is the order for these steps? 1. Obtain an understanding of internal control.
2) Assess control risk.
3) Perform tests of controls.
4) Decide on planned detection risk and substantive testing.

• A) 4, 1, 2, 3
• B) 1, 2, 3, 4
• C) 1, 3, 2, 4
• D) 2, 1, 3, 4

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Definitions:

Rolling Department

A section within a manufacturing facility where the process of rolling, a metalworking technique of plastically deforming metal by passing it between rolls, takes place.

Solver

A computational tool, often found in spreadsheet software, used for finding the optimal solution to a mathematical problem by altering multiple variables.

Number of Hours

A measure of time representing the total duration often used in contexts such as work, study, or project timelines.

Monthly Profit

The financial gain or loss realized by a business or individual over the course of a single month, after all expenses have been subtracted from revenue.