Which of the Following Is NOT Part of the Four-Step

question 101

Multiple Choice

Which of the following is NOT part of the four-step approach used by auditors to reduce assessed control risk?

• A) Identify key controls that should reduce control risk for each transaction-related audit objective.
• B) Develop appropriate tests of controls for all internal controls that are used to reduce the preliminary assessment of control risk below maximum (key controls).
• C) Apply the transaction-related objectives to the class of transactions being tested.
• D) Perform analytical procedures on the transaction cycle tested.

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Definitions:

Nonverbal Channels

Methods of communication that do not involve words, such as body language, facial expressions, and gestures.

Dynamic Process

An ongoing, ever-changing procedure characterized by activity and progress.

Continuance Commitment

An individual's psychological attachment to an organization, based on the costs they associate with leaving it.

Afford to Leave

The financial capacity or personal situation that allows an individual to exit a job, relationship, or situation without facing significant hardship.