When the Auditor Assesses the Likelihood of Material Misstatement in the Financial

question 44

Multiple Choice

When the auditor assesses the likelihood of material misstatement in the financial statements,the auditor will use

• A)risk assessment procedures.
• B)procedures to obtain an understanding.
• C)tests of control.
• D)assessment of design effectiveness of controls.

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Definitions:

Internal Programmers

Developers or coders who are employed within an organization to create and maintain its computer software and systems.

JIT

Just-In-Time, a management strategy that aligns raw-material orders from suppliers directly with production schedules, aimed at reducing inventory costs.

Downstream

Refers to activities or processes that happen after the initial production phase, often relating to the distribution, refining, and retailing of products.

SCM Systems

Supply Chain Management systems, software solutions designed to manage and optimize the flow of goods, services, and information from supplier to customer.