The Audit Process Has Three Categories of Audit Phases: Risk

question 61

Multiple Choice

The audit process has three categories of audit phases: risk assessment, risk response, and reporting. Which of the following are part of the risk assessment process?

• A) preplanning, design further audit procedures, tests of control
• B) client risk profile, plan the audit, design further audit procedures
• C) client acceptance, understand the entity, plan the audit
• D) preplanning, plan the audit, design further audit procedures

---

Definitions:

Accident Insurance

Accident Insurance is a type of policy providing financial compensation to the insured in case of injuries, disability, or death caused solely by accidental means.

Accrued Salaries

These are wages that have been earned by employees but have not yet been paid by the employer.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption or wear and tear.

Services Provided

Activities done for others as an economic product that are intangible, not stored, and produced at the time of consumption.