Auditors Follow a Four- Step Approach to Reduce Assessed Control

question 56

Multiple Choice

Auditors follow a four- step approach to reduce assessed control risk. Which is NOT one of them?

• A) Identify key controls that should reduce control risk for each transaction- related audit objective.
• B) Apply the transaction- related objectives to the class of transactions being tested.
• C) Develop appropriate tests of controls for all internal controls that are used to reduce the preliminary assessment of control risk below maximum (key controls).
• D) Perform analytical procedures on the transaction cycle tested.

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Definitions:

Passive Voice

A sentence construction where the subject is acted upon by the verb, often obscuring who is performing the action.

Assigning Blame

The act of attributing responsibility for a fault or wrong to a person or entity.

Present Tense

The verb tense used to describe actions currently happening or general truths.

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