Which of the Following Is Not One of the Risk

question 22

Multiple Choice

Which of the following is not one of the risk assessment procedures auditors do in obtaining an understanding the entity?

• A)Discussions with management.
• B)Performing substantive procedures.
• C)Observing processes in action.
• D)Inspecting relevant documents.

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Definitions:

First Mover Advantage

A competitive advantage gained by the first significant company to move into a new market or develop a new product or service.

High Price

A situation where the cost of a product or service is considered to be significantly above average or expected values.

Final Offer

The last proposal made in a negotiation, beyond which the offeror is unwilling to make further concessions.

Outside Options

Alternatives available to negotiating parties, especially if current negotiations fail, influencing their bargaining power.