Which of the Following Statements About Performing Tests of Controls

question 615

Multiple Choice

Which of the following statements about performing tests of controls to support a lower level of control risk is not true?

• A) Observation by the auditor provides more assurance than inquiry alone.
• B) Inquiry alone generally will support a conclusion for a lower assessed level of control risk.
• C) Prior audits may be considered by the auditor in assessing control risk in the current audit.
• D) An audit of financial statements is a cumulative process.

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Definitions:

Bottom-Up Processing

Analysis that begins with the sensory receptors and works up to the brain’s integration of sensory information.

Subliminal Priming

The use of stimuli presented below the threshold of conscious perception to influence thoughts, feelings, or actions.

Conscious Awareness

The mental state of being fully present and aware of oneself and the surroundings.

Subliminal Sounds

Sounds that are played below the conscious level of hearing, purportedly influencing behavior or perception.