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

question 48

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

Discern the role of individual integrity and truthfulness in professional ethics.

Identify factors contributing to a company’s social performance evaluation.

Understand the legislation that encourages ethical behavior in organizations.

Recognize the importance of whistleblowing in maintaining ethical standards.

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Definitions:

Merchandising Business

A type of business that purchases goods and resells them to consumers without changing their form, primarily making profit through the retail or wholesale of products.

Service Business

A business that provides intangible products or services to customers rather than physical goods.

Closing Entries

The entries that transfer the balances of the revenue, expense, and drawing accounts to the owner’s capital account.

Ratio of Sales

A financial metric used to analyze a company's performance, efficiency, or market position, calculated by comparing sales figures to various other components.