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

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Definitions:

Left Hemisphere

The left side of the brain, typically associated with linguistic abilities, logical reasoning, and analytical tasks.

Strings of Digits

Sequences of numerical digits, which can be used in various contexts such as passwords, mathematical calculations, or data entry.

Left Hand

The non-dominant hand for the majority of people, controlled by the right hemisphere of the brain, often associated with tasks requiring spatial and nonverbal processes.

Percentage

A mathematical term expressing a number or ratio as a fraction of 100, used to compare proportions.