After Obtaining an Understanding of Internal Controls and Assessing Control

question 84

Multiple Choice

After obtaining an understanding of internal controls and assessing control risk of an entity,an auditor decided not to perform tests of controls for purposes of the audit.The auditor most likely decided that

• A) The available evidential matter obtained through tests of controls would not support an increased level of control risk.
• B) A reduction in the assessed level of control risk is justified for certain financial statement assertions.
• C) It would be inefficient to perform tests of controls that would result in a reduction in planned substantive procedures.
• D) The assessed level of inherent risk exceeded the assessed level of control risk.

---

Definitions:

Secure Base

A concept in attachment theory referring to the role of primary caregivers as a dependable foundation from which children explore the world and return to for comfort and safety.

Avoidant Attachment

A type of insecure attachment characterized by apparent indifference to the leave-takings of, and reunions with, an attachment figure.

Attachment to Father

The emotional bond that develops between a child and their father, influencing the child's development and their future interpersonal relationships.

Diapers

Absorbent garments worn by individuals who are unable to control their bladder or bowel movements.