Assessing Control Risk at Below the Maximum Level Most Likely

question 24

Multiple Choice

Assessing control risk at below the maximum level most likely would involve:

• A)performing more extensive substantive tests with larger sample sizes than originally planned.
• B)reducing inherent risk for most of the assertions relevant to significant account balances.
• C)changing the timing of substantive tests by omitting interim-date testing and performing the tests at year end.
• D)identifying specific internal control activities that are relevant to specific financial statement assertions.

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Definitions:

Economic Behavior

The actions and decisions individuals, households, and organizations make regarding the allocation and use of resources.

Behavioral Economics Approach

A method of economic analysis that applies psychological insights into human behavior to explain economic decision-making.

Online Coupons

Digital versions of traditional coupons that provide a discount or promotion when purchasing goods or services over the Internet.

Price Matching

A policy by which a retailer promises to match a competitor’s lower price on an identical item to attract or retain customers.