When Assessing Risk Control, the Auditor Must Do All of the Following

question 85

Multiple Choice

When assessing risk control, the auditor must do all of the following except

• A) assess control risk for each objective by evaluating the controls and deficiencies for each objective.
• B) perform the detailed test of balances.
• C) identify the key internal controls and deficiencies.
• D) associate the key controls and deficiencies with the objectives.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, representing the cumulative wear and tear or obsolescence of the asset.

Contra

Contra refers to an account that is used to reduce another account on the financial statements to its net value.

Plant Asset

Long-term tangible assets used in the operation of a business and not intended for resale, such as machinery, buildings, and vehicles.

Loss

The negative result when expenses exceed revenues during a specific period.