The Process Used When Developing an Audit Strategy at the Account

question 102

Multiple Choice

The process used when developing an audit strategy at the account or assertion level begins with identifying inherent risks at the account or assertion level.The second step is to _______.

• A)determine whether an internal control can mitigate the risk factor
• B)increase the extent of detailed substantive procedures performed at year-end
• C)perform less extensive detailed substantive procedures at interim
• D)determine whether insurance can be purchased to eliminate internal controls

---

Definitions:

External Product Development

The process where a company outsources product development activities to external partners.

Development Strategies

Comprehensive plans or methodologies aimed at achieving long-term goals, such as economic growth, product innovation, or market expansion.

Service Design

The activity of planning and organizing a company's resources, infrastructure, communication, and materials to improve its service quality.

Reduce Costs

Implementing strategies and measures to decrease expenses and improve efficiency in operations.