Which of the Following Is the First Step in the Risk-Based

question 41

Multiple Choice

Which of the following is the first step in the risk-based audit approach?

• A) Identify the control procedures that should be in place.
• B) Evaluate the control procedures.
• C) Determine the threats facing the AIS.
• D) Evaluate weaknesses to determine their effect on the audit procedures.

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Definitions:

Full Amount

The total quantity or extent of something, typically referring to the complete sum of money owed or due.

Repaid

The process of repaying funds that were once loaned by a creditor.

Borrowed

The act of receiving funds from another party with the promise to return the principal amount along with interest or other charges.

Payment

The act of transferring money or goods in exchange for a product or service, or to fulfill a legal obligation.