CAS 330,the Auditor's Response to Assessed Risks,explains That the Auditor

question 55

Multiple Choice

CAS 330,the auditor's response to assessed risks,explains that the auditor needs to link completed audit work to the assessed risks at the assertion level and

• A)document the conclusions and results of the audit procedures.
• B)perform substantive procedures in areas where there is a high risk of fraud.
• C)have the reviewing partner sign off on the assessed risk.
• D)ensure that they test the entire population for areas that are considered to have a high risk of errors.

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Definitions:

Partnership

is a legal form of business operation between two or more individuals who share management and profits.

Capital Accounts

Capital accounts track the equity or ownership interests of the shareholders or partners in a company, including their contributions and withdrawals.

Losses On Realization

Financial deficits incurred when assets are sold for a price lower than their book value during the liquidation of a business or in settling debts.

Cash Distribution

The payment of proceeds or earnings to shareholders or partners in a business, often from dividends or the liquidation of assets.