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:

Declining-Balance

A method of depreciation where an asset loses value at a rate that decreases over time, opposite of straight-line depreciation.

Useful Life

The estimated duration of time an asset is expected to be useful and productive for the purpose it was acquired.

Replace The Asset

The process of substituting an existing asset with a new or improved version, often due to obsolescence, wear, or technological advances.

Obsolescence Factors

Elements that contribute to the decline in value and usefulness of assets over time, affecting their depreciation.