A Chief Audit Executive Would Most Likely Use Risk Assessment

question 426

Multiple Choice

A chief audit executive would most likely use risk assessment for audit planning because it provides:

• A) A systematic process for assessing and integrating professional judgment about probable adverse conditions.
• B) A listing of potentially adverse effects on the organization.
• C) A list of auditable activities in the organization.
• D) The probability that an event or action may adversely affect the organization.

---

Definitions:

Stamping Machine

A machine used in the manufacturing process to imprint or shape items with specific designs or patterns.

Accrued Interest

Interest that has been incurred but not yet paid, typically referring to the interest on a bond since the last interest payment was made.

Land

A real estate property consisting of the earth's surface, along with any attached natural resources and rights.

Disposal of Asset

The process of selling, scrapping, or otherwise removing an asset from a company's balance sheet, often due to obsolescence, surplus, or a strategic shift.