A PA Has Designed an Audit Approach Where She Places

question 66

Multiple Choice

A PA has designed an audit approach where she places maximum possible reliance on controls.This means that she will be

• A)conducting only tests of controls.
• B)using analytical review and tests of controls.
• C)following a combined audit approach.
• D)setting control risk at 100%.

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Definitions:

Bank Reconciliation

The procedure of ensuring the balances of a cash account in a firm's accounting books match the corresponding figures on a bank statement.

Cash Account

An account used to record cash transactions in a company's financial statements, including inflows and outflows of cash.

Organic

Referring to foods or products grown without the use of synthetic pesticides, fertilizers, genetically modified organisms, or ionizing radiation.

GMO-Free

Pertaining to products or foodstuffs that do not contain genetically modified organisms.