The Auditor May Identify Some Risks That Cannot Be Effectively

question 14

Multiple Choice

The auditor may identify some risks that cannot be effectively tested by substantive tests alone. For example, when there are paperless transactions (perhaps using EDI - electronic data interchange) . To address these risks, the auditor is required to

• A) assess the design effectiveness of relevant controls and test them.
• B) obtain an understanding of the controls and test them if reliance is intended.
• C) obtain an understanding of the controls and assess their design effectiveness.
• D) test the controls that address the paperless aspects of the transactions.

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Definitions:

US Troops

Military forces of the United States, including the Army, Navy, Air Force, Marines, and Coast Guard.

European Allies

Countries in Europe that are allied or partnered with each other, often referring to alliances formed during major conflicts such as World War I or World War II.

Vietnamese War

Also known as the Vietnam War, a prolonged conflict from 1955 to 1975 between communist North Vietnam, supported by its allies, and South Vietnam, backed by the United States.

Commit Troops

The act of deploying military personnel to a specific location or situation in order to achieve a strategic objective or to participate in combat operations.