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.

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Definitions:

Growth Need

A theory in psychology that pertains to an individual's desire for personal development and self-improvement.

Transcendence

The act of going beyond the normal limits or surpassing usual physical human experiences, often associated with spiritual or existential states.

Self-Actualizing Person

An individual who realizes their potentialities and seeks personal growth and fulfillment, as described in Maslow's hierarchy of needs.

Peak Experiences

Highly positive moments of joy and fulfillment that are often a realization of one's true potential or a sense of transcendental unity with the universe.