Auditors Follow a Four Step Approach to Reduce Assessed Control

question 52

Multiple Choice

Auditors follow a four step approach to reduce assessed control risk. Which of the following is not one of the four?

• A) Apply transaction related audit objectives to a class of transactions.
• B) Indentify accounts that have high inherent risk.
• C) Identify key controls that reduce control risk.
• D) For potential misstatements, design appropriate substantive tests of transactions.

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Definitions:

Equitable Principles

Legal rules derived from fairness, morality, and justice, rather than those based strictly on laws or statutes.

Specific Performances

A legal remedy where a court orders a party to perform their contractual duties, rather than seeking monetary damages.

Injunctions

Court orders that require a party to do or refrain from doing specific actions.

Medieval England

Refers to the period in English history from the 5th to the late 15th centuries, characterized by feudalism, knights, and castles.