After Performing Risk Assessment Procedures, an Auditor Decided Not to Perform

question 573

Multiple Choice

After performing risk assessment procedures, an auditor decided not to perform tests of controls. The auditor most likely decided that:

• A) The available evidence obtained through tests of controls would not support an increased level of control risk.
• B) A reduction in the assessed level of control risk is justified for certain financial statement assertions.
• C) It would be inefficient to perform tests of controls that would result in a reduction in planned substantive tests.
• D) The assessed level of inherent risk exceeded the assessed level of control risk.

Recognize the implications of dishonor and the obligations of indorsers in negotiable instruments.

Understand and implement effective test preparation strategies.

Develop strategies to manage test anxiety.

Enhance exam-taking skills, including time management and question analysis.

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Definitions:

Task-Oriented

Focused primarily on accomplishing specific objectives or tasks rather than on emotional or interpersonal aspects.

Self-Oriented

Focused on one's own interests, needs, or goals, often without considering those of others.

Purpose-Oriented

Focused on or driven by a specific goal or objective.

Personal Goals

Specific objectives set by an individual, aiming for personal growth or achievement in areas of their life.