Which of the Following Statements Concerning Control Risk Is Correct

question 2

Multiple Choice

Which of the following statements concerning control risk is correct?

• A) Assessing control risk and obtaining an understanding of an entity's internal controls may be performed concurrently.
• B) When control risk is at the maximum level, an auditor is required to document the basis for that assessment.
• C) Control risk may be assessed sufficiently low to eliminate substantive procedure for significant transaction classes.
• D) When assessing control risk, an auditor should not consider evidence obtained in prior audits about the operation of control activities.

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Definitions:

Substance Use Disorder

A state where consuming one or more substances results in significant clinical impairment or distress.

Binge Drinking

A pattern of alcohol consumption in which a person consumes five or more drinks on a single occasion.

GABA

Gamma-Aminobutyric Acid, a neurotransmitter in the brain known for its inhibitory effects on the central nervous system, playing a role in reducing neuronal excitability throughout the nervous system.

Tolerance

The process by which the body becomes accustomed to a substance or drug, requiring increasingly larger doses to achieve the original effect.