AU-C 315, Understanding the Entity and Its Environment, and Assessing

question 102

Multiple Choice

AU-C 315, Understanding the Entity and Its Environment, and Assessing the Risks of Material Misstatement, defines risk assessment procedures as _______.

• A)audit procedures performed to obtain an understanding of the auditor and its environment, including the entity's internal control, to identify and assess the risk of material misstatement at the financial statement level and relevant assertion levels, whether due to error or fraud
• B)audit procedures performed to obtain an understanding of the entity and its environment, including the entity's internal control, to identify and assess the risk of material misstatement, at the financial statement level and relevant assertion levels - whether due to error or fraud
• C)any procedure that involves international currency transactions
• D)any procedure that was performed by the prior auditor, which is repeated by the current auditor

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Definitions:

JNC 8

Guidelines for the management of high blood pressure in adults, prepared by the Joint National Committee on Prevention, Detection, Evaluation, and Treatment of High Blood Pressure.

Menstruation

The monthly shedding of the uterus lining when pregnancy does not occur, leading to bleeding from the vagina.

Palpation

A method of feeling with the hands to examine the body, especially while diagnosing a disease or illness.

Percussion

A diagnostic technique used in physical examinations to produce sounds from the body, aiding in the assessment of conditions.