The Most Important Factor When Responding to Assessed Risks Is

question 37

Multiple Choice

The most important factor when responding to assessed risks is _______.

• A)consideration of the nature of the audit procedure
• B)consideration of the nature of the associated internal control
• C)the opinion of management regarding the assessed risk
• D)the opinion of the internal auditor regarding the assessed risk

---

Definitions:

Amortization

The process of gradually writing off the initial cost of an intangible asset over a period.

Equity Method

An accounting technique used to record investments in other companies, where the investment is adjusted for the investor’s share of the investee’s profits and losses.

Equity Method Investments

Accounting for investments in other entities where the investor has significant influence over the investee but does not fully control or own it, typically between 20% and 50% ownership.

Common Stock

A type of security that represents ownership in a corporation and gives holders voting rights and a share in the company's profits through dividends.