Which of the Following Procedures Is Usually the First Step

question 63

Multiple Choice

Which of the following procedures is usually the first step in reviewing the financial statements of a nonpublic entity?

• A)Make preliminary judgments about risk and materiality to determine the scope and nature of the procedures to be performed.
• B)Obtain a general understanding of the entity's organization,its operating characteristics,and its products or services.
• C)Assess the risk of material misstatement arising from fraudulent financial reporting and the misappropriation of assets.
• D)Perform a preliminary assessment of the operating efficiency of the entity's internal control activities.

---

Definitions:

Slide Sorter View

A feature in presentation software that shows thumbnail versions of slides for easy organizing and rearranging.

Reading View

A display mode in certain programs designed to improve the readability of text, often used for reviewing or editing documents.

Photo Styles

Preset filters or effects that can be applied to digital images to alter their appearance or enhance their aesthetics.

Audio File

A digital file format used to store sound data, including music, effects, and voice recordings, that can be played back by software.