Henrietta Lombardi Assessed Control Risk to Be Low

question 58

Multiple Choice

Henrietta Lombardi assessed control risk to be low. What is the appropriate audit strategy she should adopt?

• A) predominantly substantive audit approach
• B) control testing strategy
• C) combined audit strategy
• D) substantive year end testing

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Definitions:

IFRS 15

The International Financial Reporting Standard that specifies how and when to recognize revenue from contracts with customers, setting requirements for the disclosure of revenue information.

Contracts

Legally binding agreements between two or more parties that outline terms, conditions, and obligations of each party.

Conceptual Framework

A theoretical structure that outlines the objectives and fundamentals of financial reporting to guide the development of accounting standards.

Income

Increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.