The First Step in Assessing Control Risk Is to _______

question 61

Multiple Choice

The first step in assessing control risk is to _______.

• A)understand entity-level controls
• B)understand the flow of transactions
• C)identify relevant controls to test
• D)determine preliminary audit strategy

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Definitions:

Downside Risks

The potential negative outcomes or losses that may occur as a result of an investment or decision.

Supply Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer, aiming to reduce costs and improve efficiency.

Purchasing

The act of acquiring goods or services, often for business purposes, to fulfill the needs of an organization or individual.

Procurement

The process of obtaining goods, services, or works from an external source, often via a tendering or competitive bidding process.