After Obtaining an Understanding of Internal Control and Performing Risk

question 186

Multiple Choice

After obtaining an understanding of internal control and performing risk assessment procedures, an auditor decided not to perform tests of controls. The auditor most likely concluded that the:

• A) Additional evidence to support a reduction in control risk was not cost-beneficial to obtain.
• B) Assessed level of inherent risk exceeded the assessed level of control risk.
• C) Internal control was properly designed and justifiably may be relied on.
• D) Evidence obtainable through tests of controls would not support an increased level of control risk.

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Definitions:

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, values, or ideas at the same time.

Coordinated Support

Collaborative and harmonized assistance among individuals or groups to achieve a common goal.

Work Group Support

The assistance and encouragement a group provides to its members, enhancing collaboration, morale, and productivity.

Supervisory Support

The assistance and guidance provided by supervisors to their subordinates, aiming to help them perform their tasks more effectively and improve their skills.