Risk Assessment Procedures Are Performed by Auditors During an Audit

question 57

Multiple Choice

Risk assessment procedures are performed by auditors during an audit in order to

• A) determine the risk of material misstatement in the financial statements.
• B) determine the amount of testing of internal control.
• C) determine the extent of testing of details of balances.
• D) determine the extent of testing of transactions.

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Definitions:

Nuclear Explosion

A highly destructive blast caused by the release of energy from the rapid and uncontrolled release of nuclear fission or fusion reactions.

Enrichment

The process of increasing the proportion of a desired material or isotope in a mixture.

Nuclear Material

Substances that emit radiation, used in energy production, medicine, and atomic weapons.

Depleted Uranium

Depleted uranium is uranium mainly consisting of the isotope uranium-238, having a lower content of uranium-235 than natural uranium, commonly used in military applications and for counterweights.