When a Risk Assessment Process Has Been Used to Construct

question 188

Multiple Choice

When a risk assessment process has been used to construct an audit engagement schedule, which of the following should receive attention first?

• A) The external auditors have requested assistance for their upcoming annual audit.
• B) A new accounts payable system is currently undergoing testing by the information technology department.
• C) Management has requested an investigation of possible lapping in receivables.
• D) The existing accounts payable system has not been audited over the past year.

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Definitions:

Alteration

The act of modifying or changing something, often referring to documents, clothing, or physical structures.

Same Sex Alliance

A partnership, union, or alliance that involves individuals of the same gender; often used in the context of legally recognized relationships or marriages.

CEO

Chief Executive Officer - The highest-ranking executive in a company, responsible for making major corporate decisions and managing the overall operations and resources of the company.

Honor

In banking and finance, refers to the act of accepting or paying a negotiable instrument when it is presented.