In an Audit Strategy, the First Step Is to Identify

question 165

Multiple Choice

In an audit strategy, the first step is to identify ________ risks during the ________ phase.

• A)inherent; risk assessment
• B)detection; risk response
• C)significant; reporting
• D)control; risk response

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Definitions:

Negotiable Instrument

A written promise certifying the payment of a certain sum of money, either upon request or at a predetermined date, with the document specifying the individual responsible for payment.

Value

Under the Code (except for negotiable instruments and bank collections), generally any consideration sufficient to support a simple contract.

Qualified Indorsement

An endorsement on a negotiable instrument that limits the liability of the endorser or specifies particular conditions for the endorsement's validity.

Liability

A legal responsibility or obligation, often involving financial compensation, that arises from actions or agreements.