Which of the Following Should an Auditor Do When Control

question 67

Multiple Choice

Which of the following should an auditor do when control risk is assessed at the maximum level?

• A)Perform fewer substantive tests of details.
• B)Perform more tests of controls.
• C)Document the assessment.
• D)Document the control structure more extensively.

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Definitions:

Poisson Problem

A statistical problem that deals with counting the number of events that occur randomly over a fixed period or in a fixed space, assuming that these events happen with a known constant mean rate and independently of the time since the last event.

Number of Events

The total count of occurrences or actions within a specified context or timeframe.

Poisson Parameter

A parameter of the Poisson distribution that represents the average number of occurrences of an event in a fixed interval of time or space.

Mean Number

The arithmetic average of a set of values, calculated by dividing the sum of all values by the number of values.