There Are Three Phases in the Risk Response Category of the Audit

question 47

Multiple Choice

There are three phases in the risk response category of the audit process (design further audit procedures, tests of control, substantive tests) . When will the auditor conduct tests of controls?

• A) when there are poor internal controls
• B) if the auditor plans to rely upon them
• C) when a substantive audit approach is selected
• D) when there are low risks of material error

Recognize the significance of points of difference in positioning products against competitors.

Apply the concept of SWOT analysis to assess both internal and external environments affecting an organization.

Understand the concept of customer value proposition and its significance in marketing.

Grasp the components of the marketing mix and their roles.

---

Definitions:

Fixed Cost

Costs that do not fluctuate in relation to the level of production or sales, such as rent or salaries.

Economic Order Quantity

The optimal quantity of inventory to order that minimizes total inventory costs, including holding, ordering, and shortage costs.

Carrying Cost

The total expense of holding a particular asset over time, including storage, insurance, and taxes, but excluding buying cost.

Order Cost

Expenses incurred in placing and receiving orders from suppliers, including costs related to processing, shipping, and handling.