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:

Suspicious

Characterized by or indicative of suspect or lack of trust.

PCP

A dissociative drug, also known as phencyclidine, that can induce hallucinations, distortions in perceptions, and is used illicitly.

Barbiturates

A class of drugs previously used for anxiety, insomnia, and seizure control, but now less common due to the risk of dependency and overdose.

Knowledge-Management Systems

Specialized systems designed to capture, organize, and distribute knowledge within an organization to improve efficiency, creativity, and innovation.