Which of the Following Is a Step in an Auditor's

question 5

Multiple Choice

Which of the following is a step in an auditor's decision to assess control risk at below the maximum?

• A) Apply analytical procedures to both financial data and nonfinancial information to detect conditions that may indicate weak controls.
• B) Perform tests of details of transactions and account balances to identify potential errors and fraud.
• C) Identify specific internal control policies and activities that are likely to detect or prevent material misstatements.
• D) Document the fact that the additional audit effort to perform tests of controls exceeds the potential reduction in substantive testing.