When Tests of Controls Are Not Performed While Obtaining an Understanding

question 17

Multiple Choice

When tests of controls are not performed while obtaining an understanding under the primarily substantive approach:

• A) they must be performed at year-end.
• B) preliminary control risk must be assessed at the maximum.
• C) preliminary control risk must be assessed at below maximum.
• D) preliminary control risk must be assessed at the minimum.

Understand the concept and characteristics of atomic and atomic data types.

Grasp the definition, structure, and examples of data structures.

Comprehend the properties and operations of one-dimensional arrays including their terminology and access techniques.

Differentiate between atomic data types and complex data structures.

---

Definitions:

Previous Business Combination

Refers to a merger or acquisition that has occurred in the past where two or more entities combined to form a single entity.

Pre-acquisition Entry

Accounting entries made to record the assets and liabilities acquired from another company before the actual acquisition.

Shares in Subsidiary

Ownership stakes held in a subsidiary company by the parent company or other shareholders.

Acquisition Date

The date on which control of the assets and operations of an acquired company is transferred to the buyer.