After Obtaining an Understanding of Internal Control and Arriving at a Preliminary

question 5

Multiple Choice

After obtaining an understanding of internal control and arriving at a preliminary assessed level of control risk,an auditor decided to perform tests of controls.The auditor most likely decided that:

• A)Additional evidence to support a reduction in the assessed level of control risk is not available.
• B)An increase in the assessed level of control risk is justified for certain financial statement assertions.
• C)It would be efficient to perform tests of controls that would result in a reduction in planned substantive procedures.
• D)There were many internal control deficiencies that would allow misstatements to enter the accounting system.

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Definitions:

FITT Formula

A principle used in exercise that stands for Frequency, Intensity, Time, and Type.

Exercise Program

A structured plan of physical activities tailored to meet individual fitness goals, which can include various types of exercises and intensity levels.

Fitness Level

An individual's overall physical health and abilities, often assessed through factors like endurance, strength, flexibility, and body composition.

Recommended Activities

Suggestions for physical or mental actions aimed at improving health, skill, or well-being.