Theoretically, When Assessing the Inherent Risk Related to an Account

question 15

Multiple Choice

Theoretically, when assessing the inherent risk related to an account balance, an auditor does not explicitly consider the ________.

• A) liquidity of the account
• B) management estimates involved in determining the account balance
• C) internal control policies and procedures
• D) complexity of calculations involved

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Definitions:

Informal Assessment

Informal assessment refers to the diverse and flexible methods used by educators to evaluate a student's learning progress and understanding without using standardized tests.

Assessment Instruments

Tools or devices used to evaluate or measure the abilities, skills, or knowledge level of an individual or group.

Sociometric Technique

A method used to measure social relationships and patterns of interaction within groups, often involving surveys to determine preferences or rejections among group members.

Informal Assessment

Non-standardized forms of testing that can vary in structure, utilized to observe, evaluate and informally measure student performance or skills.