After Determining Materiality, Which of the Following Is NOT a Step

question 110

Multiple Choice

After determining materiality, which of the following is NOT a step for the auditor to follow?

• A)Determine who is most likely to commit fraud
• B)Determine the type and extent of risk assessment procedures to be performed
• C)Identify and assess the risk of material misstatements occurring at the financial statement level and the account balance level
• D)Begin development of an audit strategy

---

Definitions:

Declaration

A formal statement, announcement, or document outlining intentions, conditions, or observations on certain matters.

Covenants

Legally enforceable agreements or promises within a deed or contract, specifying actions the parties must or must not engage in.

Joint Tenancy

A form of co-ownership where property is owned by two or more parties with equal rights to the whole property, and with the right of survivorship.

Tenancy In Common

A type of co-ownership in which each owner has the right to sell his or her interest without the consent of the other owners, may own an unequal share of the property, and may have a creditor attach his or her interest.