AU-C 330 Performing Audit Procedures in Response to Assessed Risks

question 75

Multiple Choice

AU-C 330 Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained and AS 2301 The Auditor's Responses to the Risks of Material Misstatement state that auditors _______.

• A)are required to perform substantive procedures for all relevant assertions that have been identified after issuance of the audit opinion
• B)are required to perform substantive procedures for all relevant assertions that have been identified during the risk assessment phase
• C)are required to perform tests of controls for all relevant assertions that have been identified during the risk assessment phase
• D)should notify the client immediately of a change in fee structure pertaining to the audit

---

Definitions:

Labor Hours

The total number of work hours contributed by employees in a given period, often used as a measure of production, efficiency, and labor cost.

Inventory Holding Cost

The total cost associated with storing unsold goods, including storage, insurance, taxes, depreciation, and opportunity costs.

Overall Market

The collective scope of buyers and sellers in a particular sector or industry, encompassing all potential transactions for goods or services.

Market Share

The share of a market dominated by a specific company or product, usually represented as a percentage.