A Strategic and Risk-Based Audit Approach Means That the Client

question 25

Multiple Choice

A strategic and risk-based audit approach means that the client must be assessed in the context of the business environment,including which of the following?

• A)ensuring that accounting complies with IFRS or ASPE
• B)completion of an independence threat analysis with supporting documentation
• C)corporate governance process and quality of internal controls
• D)talking to those audit committee members who are also part of management

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Definitions:

Utility Function

A mathematical representation of how consumer preferences over a set of goods and services are ranked.

Horizontal Axis

In a graphical representation, the x-axis, which typically shows the independent variable or the quantity of goods.

Vertical Axis

in a graph or chart, the y-axis which typically represents the range of values or dependent variables.

Perfect Substitute

Goods that can be completely replaced by another with no loss of utility to the consumer, such as different brands of sugar.