After Performing a Risk Assessment of a Food Processing Company

question 72

Multiple Choice

After performing a risk assessment of a food processing company, Sean Spino has come to the conclusion that he will require more evidence to be obtained by his audit team from substantive procedures. Which of the factors below led him to this conclusion?

• A) the level of assurance necessary
• B) the type of evidence required
• C) the nature of the test
• D) the complexity of the client's data capturing systems

---

Definitions:

Metal Price

The cost of purchasing a specific type of metal on the market, influenced by factors such as supply, demand, and geopolitical events.

Demand

The amount of a product or service that buyers are ready and capable of buying at different price levels over a specific timeframe.

Cellular Phone Service

A service that allows mobile phone users to make and receive calls and access data over a radio frequency link while moving within a service area.

Technological Improvements

Enhancements or advancements in technology that increase productivity, efficiency, or the overall quality of goods and services.