Obtaining an Understanding of the Internal Control and Assessing Control

question 18

Multiple Choice

Obtaining an understanding of the internal control and assessing control risk:

• A)may be performed concurrently in an audit.
• B)needs to be documented only if the assessed level of control risk is less than high.
• C)is possible but not necessary in performing an audit.
• D)are necessarily sequential audit steps.

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Definitions:

Price Skimming

A pricing strategy where a firm charges the highest initial price that customers will pay for a new product or service, then gradually lowers the price to attract more price-sensitive consumers.