Which of the Following Is True Regarding Audit Risk for Segments

question 5

Multiple Choice

Which of the following is true regarding audit risk for segments?

• A) Control risk must be assessed at the same level for all accounts.
• B) Factors affecting inherent risk do not differ from account to account.
• C) Acceptable audit risk is ordinarily assessed by the auditor during the substantive test of balances phase and is held constant for each major cycle and account.
• D) In some cases, a lower acceptable audit risk may be more appropriate for one account than for others.