Which of the Following Is NOT a Consideration When the Auditor

question 86

Multiple Choice

Which of the following is NOT a consideration when the auditor is attempting to assess the inherent risk?

• A) results of previous audits
• B) existence of related parties
• C) nature of client's business
• D) frequency and intensity of top management's review of the accounting transactions and records

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Definitions:

Total Integration

A strategy or process that involves combining all functions, processes, and systems within an organization to work as a cohesive unit.

Performing Stage

The fourth phase in the Tuckman model of team development, characterized by high levels of cooperation, unity, and productivity.

Decentralised Communication Network

Allows all members to communicate directly with one another.

Interacting Groups

Collections of individuals who communicate and work together, influencing each other’s behavior and outcomes through their interactions.