Which of the Following Is an Accurate Statement Regarding the Risk

question 57

Multiple Choice

Which of the following is an accurate statement regarding the risk assessment process of phase I of the audit process for the sales and collection cycle?

• A) Auditors must perform substantive tests related to assertions deemed to have significant risks.
• B) The auditor must relate control risk for transaction-related audit objectives to balance-related audit objectives in deciding planned inherent risk.
• C) The realizable value balance-related audit objectives are affected by assessed control risk for classes of transactions.
• D) All of the above are accurate statements.