Assessing Control Risk as Less Than High Would Most Likely

question 65

Multiple Choice

Assessing control risk as less than high would most likely involve:

• A) changing the timing of substantive tests by omitting interim testing and performing the tests at year-end.
• B) identifying specific internal controls relevant to specific assertions.
• C) performing more extensive substantive tests with larger sample sizes than originally planned.
• D) reducing inherent risk for most of the assertions relevant to significant account balances.

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Definitions:

Organizational Model

A framework or system that outlines the structure, operations, and management of an organization, guiding its functioning and development.

Personality Conflicts

Conflicts that arise due to differences in character, behavior, or temperament between individuals.

Organizational Analysis

The process of examining the structures, processes, and systems within an organization to identify strengths, weaknesses, and opportunities for improvement.

Flexible Working Structure

An organizational approach that allows employees to have varied work hours and locations, promoting work-life balance.