What Is the Purpose of the Preliminary Assessment of Control

question 29

Multiple Choice

What is the purpose of the preliminary assessment of control risk?

• A) to obtain a reasonable expectation of controls so as to decide on an appropriate audit strategy.
• B) to determine the extent to which internal controls have been implemented
• C) to obtain the necessary information for developing the flowchart.
• D) to provide management with an opinion on the effectiveness of controls.

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Definitions:

Statute of Limitations

Laws that set the maximum time after an event within which legal proceedings may be initiated.

Unenforceable

A term applied to a contract or clause that, for legal reasons, cannot be enforced by a court.

Undue Influence

A situation where an individual is able to influence another person's decisions due to the power or trust they hold over them, often leading to unfair outcomes.

Duress

Duress occurs when someone performs an act as a result of coercion or a threat of immediate danger to life or personal safety, which compromises the voluntariness of their decision.