When the Inherent Risk and Control Risk Assessment Is High

question 17

Multiple Choice

When the inherent risk and control risk assessment is high:

• A) there are no controls tested or relied upon.
• B) minimal substantive tests are performed.
• C) the amount of substantive testing is significant.
• D) both a and c

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Definitions:

Sensitive

Capable of detecting or responding to small changes, often used in the context of measurements, instruments, or systems.

Extreme Values

Data points that are significantly different from the majority of observations in a dataset; they can be unusually high or low.

Hybridization

A concept in chemistry where atomic orbitals mix to form new hybrid orbitals, explaining the bonding in molecules.

Atom

The basic unit of a chemical element, consisting of a nucleus of protons and neutrons, with electrons orbiting the nucleus.