Matching
match the audit strategy with the audit strategy components listed below. (Items may be used more than once.)
Premises:
Plan few, if any, tests of controls.
Plan to obtain a minimum understanding of relevant portions of internal controls.
Obtain extensive knowledge of the client’s business processes relevant to the assertion.
Use a planned assessed level of control risk of moderate or low.
Responses:
A Primarily Substantive Approach
A Lower Assessed Level of Control Risk Approach
A Response to Lower Inherent Risk Approach
Correct Answer:
Premises:
Responses:
Plan few, if any, tests of controls.
Plan to obtain a minimum understanding of relevant portions of internal controls.
Obtain extensive knowledge of the client’s business processes relevant to the assertion.
Use a planned assessed level of control risk of moderate or low.
Premises:
Plan few, if any, tests of controls.
Plan to obtain a minimum understanding of relevant portions of internal controls.
Obtain extensive knowledge of the client’s business processes relevant to the assertion.
Use a planned assessed level of control risk of moderate or low.
Responses:
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