The Auditor May Identify Some Risks That Cannot Be Effectively

question 21

Multiple Choice

The auditor may identify some risks that cannot be effectively tested by substantive tests alone,for example,when there are paperless transactions (perhaps using EDI - electronic data interchange) .To address these risks,the auditor is required to

• A)assess the design effectiveness of relevant controls and test them.
• B)obtain an understanding of the controls and test them if reliance is intended.
• C)obtain an understanding of the controls and assess their design effectiveness.
• D)test the controls that address the paperless aspects of the transactions.

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Definitions:

Delivery

The act of giving birth to a baby or the method by which the baby is born, such as vaginal delivery or cesarean section.

Encounter

An interaction or meeting between individuals, often used in healthcare to describe a patient's visit or consultation.

Birth

The process of giving birth; the emergence of a baby from the body of its mother.

High-risk Pregnancy

A pregnancy that poses potential complications or danger to the health of the mother, the baby, or both, requiring specialized care.