Which of the Following Statements Concerning Control Risk Is Correct

question 788

Multiple Choice

Which of the following statements concerning control risk is correct?

• A) Assessing control risk and obtaining an understanding of an entity's internal control may be performed concurrently.
• B) Control risk may be assessed sufficiently high to eliminate substantive testing for significant transaction classes.
• C) Control risk may be assessed sufficiently low to eliminate substantive testing for significant transaction classes.
• D) When assessing control risk an auditor should not consider evidence obtained in prior audits about the operation of control activities.

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Definitions:

Inspirational Leadership

A style of leadership where the leader motivates and inspires team members to achieve their highest potential and embrace shared goals or visions.

Extraordinary Effort

An exceptional level of endeavor or dedication beyond what is typically required or expected, often aimed at achieving remarkable results or overcoming significant challenges.

Vroom-Jago Leader-Participation Model

A decision-making framework that helps leaders to choose how much participation their team members should have in the decision-making process.

Consult-With-Group Option

A decision-making process in which a leader consults a group for their opinions and inputs before making a final decision.