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NEW QUESTION: 1
An auditor's primary consideration in evaluating controls is whether specific controls:
A. Reduce detection risk to a sufficiently low level.
B. Improve the efficiency of the client's operations.
C. Can be classified into one of the five internal control components.
D. Affect financial statement assertions.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. An auditor's primary consideration in evaluating controls is whether specific controls
affect financial statement assertions, since ultimately the auditor must render an opinion on whether those
assertions are fairly stated.
Choice "B" is incorrect. The five components of internal control provide a useful framework for the auditor
to evaluate the impact of such controls on an audit, but such classification is not the auditor's primary
consideration.
Choice "C" is incorrect. Although a proper system of internal control may improve the client's operational
efficiency, it is not a primary consideration for the auditor.
Choice "D" is incorrect. The auditor controls detection risk by varying the nature, timing, and extent of
substantive tests. Whether or not a proper system of controls is in place affects control risk, not detection
risk.
NEW QUESTION: 2
A. Option A
B. Option D
C. Option B
D. Option C
Answer: C
NEW QUESTION: 3
You have been asked to configured a rule for use in a business process to evaluate multiple property
values and return a text value as a result. Which type of rule satisfies this requirement?
A. Decision tree
B. Validate
C. When rule
D. Data transform
Answer: A
NEW QUESTION: 4
A. Option B
B. Option F
C. Option A
D. Option D
E. Option E
F. Option C
Answer: E
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