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:

Depressed

Describes a state of feeling very unhappy or discouraged.

Older Adults

Individuals typically defined by an age threshold, often retirement age or 65 and over, who have moved past middle adulthood into the later stages of life.

Research Suggests

A phrase often used to introduce findings or hypotheses based on scientific studies or investigations.

Virtue

A trait or quality deemed to be morally good and thus is valued as a foundation of good moral being.