When the Auditor Has Assessed Control Risk of a Particular

question 93

Multiple Choice

When the auditor has assessed control risk of a particular area at a reduced level, he or she will then:

• A) proceed to expand the sample sizes in that area.
• B) test the effectiveness of the controls in that area.
• C) negotiate with management to determine which controls will be tested in that area.
• D) eliminate the need to gather evidence in that area.

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Definitions:

Payments

Transactions or transfers of money in exchange for goods or services, or as fulfillment of obligations.

Interest Rate

The fee, indicated as a percentage of the principal, that a borrower incurs from a lender for availing themselves of resources.

Train Sets

Collections of rail vehicles that form a complete train, often designed to operate together and include locomotives and passenger or freight cars.

Rate of Increase

The speed at which a particular variable, such as price, cost, or quantity, grows over a specified period of time, typically expressed as a percentage.