An Audit Strategy Is Developed _______

question 20

Multiple Choice

An audit strategy is developed _______.

• A)in response to the risk assessment for each significant account and assertion using the formula for audit risk
• B)in response to the risk assessment for each insignificant account and assertion using the formula for audit risk
• C)by the auditor, but must be reviewed and approved by management
• D)by the auditor, but must be reviewed and approved by the internal audit function

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Definitions:

Positive Correlation

A correlation between two variables where they both change in the same way.

Direct Relationship

A relationship where one variable increases or decreases along with the other, showing a positive correlation between the two variables.

Amount

A quantity of something, typically measurable.

Time Studying

The allocation of time towards educational activities with the aim of learning and understanding new information or skills.