Which of the Choices Below Best Describes a Risk-Based Audit

question 93

Multiple Choice

Which of the choices below best describes a risk-based audit approach?

• A)A four-step approach to internal control evaluation.
• B)A three-step approach to internal control evaluation.
• C)A four-step approach to financial statement review and recommendations.
• D)A three-step approach to financial statement review and recommendations.

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Definitions:

Tax-free Incentives

Financial benefits provided without tax liability, designed to encourage specific behaviors or investments.

Corporate Charitable Giving

The donation of funds, goods, or services to charitable causes by corporations to support various social, environmental, or community objectives.

Social Responsibility Strategy

An approach by a company to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented practices.

Corporate Misconduct

Unethical or illegal actions taken by a company or its employees, which can include fraud, insider trading, and environmental violations among others.