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:

Culture's Information

The knowledge, beliefs, customs, practices, and social behavior of a particular nation, society, or group.

Inconsiderate Behavior

Actions or attitudes that show a lack of concern or thoughtfulness for the feelings or welfare of others.

Clipped Tone

A manner of speech characterized by abrupt endings and short vowel sounds, often perceived as curt or brusque.

Tradeoffs

The concept of giving up one benefit or advantage to gain another, often considered in decision-making processes.