Which of the Following Statements Is Correct Concerning an Auditor's

question 709

Multiple Choice

Which of the following statements is correct concerning an auditor's assessment of control risk?

• A) Assessing control risk may be performed concurrently during an audit with obtaining an understanding of the entity's internal control.
• B) Evidence about the operation of controls in prior audits may not be considered during the current year's assessment of control risk.
• C) The basis for an auditor's conclusions about the assessed level of control risk need not be documented unless the auditor's risk assessment is based on the effective operation of controls.
• D) The lower the assessed level of control risk, the less assurance the evidence must provide that the controls are operating effectively.

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Definitions:

Capillary Blood Sample

A small sample of blood obtained from a capillary bed, usually by pricking the skin, useful for various medical tests.

Bruised

Describes an area of the skin that has turned dark or discolored due to injury causing bleeding under the skin.

Color-coded Stoppered Tubes

Pre-filled laboratory tubes used for blood sample collection, identified by colored stoppers for different tests.

Light-blue-stoppered Tubes

Tubes used in blood collection that contain sodium citrate, primarily for coagulation studies, preventing blood from clotting.