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.

---

Definitions:

Process Cost Accounting

An accounting method used to track production costs by processing departments or units, suitable for industries where products are indistinguishable from each other, such as chemicals.