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

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Definitions:

Standard & Poor's 500

An index tracking the performance of 500 major companies traded on U.S. stock exchanges.

Stock Market

A marketplace where securities such as stocks and bonds are bought and sold.

Investment Method

A strategy or approach used by individuals or organizations to allocate capital in the expectation of future financial returns.

Rate Of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.