To Support an Assessment That Control Risk Is Low,the Auditor

question 73

Multiple Choice

To support an assessment that control risk is low,the auditor of financial statements must:

• A)achieve the same conclusion after appropriately testing internal control.
• B)achieve the same conclusion after appropriately performing substantive procedures.
• C)perform increased substantive procedures in order to compensate for the lower rating.
• D)perform limited substantive procedures as the assessment is justified.

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Definitions:

Positively Skewed

A distribution shape where the tail is longer on the right side, indicating that there are a number of exceptionally high values.

Distribution of Exam Scores

Refers to the frequency and pattern of marks obtained by students across an examination, typically visualized as a graph or described with statistical measures.

Negatively Skewed

Describes a distribution of data where the tail is longer on the left side of the distribution's peak, indicating more values are to the right of the mean.

Positively Skewed

A distribution is positively skewed when it has a longer tail on the right side, indicating that the majority of values are concentrated on the left.