When the Auditor Has Determined That There Is a Significant

question 39

Multiple Choice

When the auditor has determined that there is a significant risk of misstatement for a particular assertion (for example,completeness of revenue) ,what type of audit testing does CAS 330 require?

• A)tests of risk assessment
• B)tests of understanding of internal control
• C)control tests
• D)substantive tests

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Definitions:

Executive Control Processes

Cognitive functions that manage and regulate the coordination of thoughts and behaviors, including planning and decision making.

Working Memory Capacity

The maximum amount of information that can be held and manipulated within the working memory for a short period.

Correlation Coefficients

Statistical measures that describe the direction and strength of the relationship between two variables.

Intelligence Test Scores

Numeric evaluations derived from assessments designed to measure an individual's cognitive abilities compared to a normative dataset.