The Auditor Designs the Risk Assessment Procedures That He Believes

question 20

Multiple Choice

The auditor designs the risk assessment procedures that he believes will be effective in assessing the risk of material misstatement for the entity.According to the auditing standards,the risk assessment process should include

• A)internal control tests for significant accounts
• B)analytical procedures
• C)observation of inventory
• D)substantive test of transactions

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Definitions:

Entrepreneurship

Engaging in the creation of a business or multiple businesses, undertaking economic risks in anticipation of making a profit.

Skills

The ability, coming from one's knowledge, practice, aptitude, etc., to do something well.

Corporate Entrepreneurs

Individuals within a large company who develop new ideas, products, or business models, effectively acting as entrepreneurs within the corporate structure.

Entrepreneurs

Individuals who, recognizing opportunities, take on the financial risk of starting and managing a new business venture.