Regardless of the Level of Assessed Control Risk,the Auditor Must

question 48

Multiple Choice

Regardless of the level of assessed control risk,the auditor must conduct some substantive procedures for material account balances.These procedures may include which of the following.

• A)input from the audit team's brainstorming analysis regarding potential for fraud.
• B)the size of the account balance.
• C)how IT affects the company's flow of transactions.
• D)all of the above.

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Definitions:

Consistency

An accounting principle that requires accounting methods and principles to be applied in the same manner from period to period unless a change is justified.

Income Tax Expense

The amount of money a company or individual owes to the government based on the taxable income earned during a fiscal year.

Interim Period

A temporary or Middle phase in a fiscal year or financial reporting period, often used for assessing a company's performance partway through the year.

Segment Profit or Loss

The financial performance of a distinct unit within a company, often evaluated to assess its contribution to the overall business.