After Obtaining an Understanding of a Client's Financial Reporting Control

question 9

Multiple Choice

After obtaining an understanding of a client's financial reporting control activities,the auditor would next

• A) Test the client's control activities.
• B) Assess the final control risk.
• C) Document the understanding obtained.
• D) Plan the remainder of the audit work.

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Definitions:

Fair Die

A fair die is a dice designed to have equal likelihoods of landing on any of its faces when thrown.

Events

Occurrences or happenings, especially significant ones within a specified area or context.

Independent

Free from outside control; not depending on another's authority or subject to another's influence.

First Ace

The initial occurrence of an ace in a series of card draws or during a specific card-related activity.