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NEW QUESTION: 1
After obtaining an understanding of internal control and performing risk assessment procedures, an auditor
decided not to perform tests of controls. The auditor most likely concluded that the:
A. Evidence obtainable through tests of controls would not support an increased level of control risk.
B. Internal control was properly designed and justifiably may be relied on.
C. Additional evidence to support a reduction in control risk was not cost-beneficial to obtain.
D. Assessed level of inherent risk exceeded the assessed level of control risk.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. When an auditor decides not to perform tests of controls, the auditor most likely
concluded that the additional evidence to support a reduction in control risk was not cost-beneficial to
obtain. In other words, the additional costs that would be incurred to support a lower assessed level of
control risk would not be offset by the anticipated cost savings resulting from a lower level of substantive
tests.
Choice "B" is incorrect. The assessed level of inherent risk (which is the susceptibility of an assertion to a
material misstatement based upon the nature of the account balance or transaction class) exists
independently from and bears no direct relationship to control risk.
Choice "C" is incorrect. Even if internal control is properly designed, it cannot justifiably be relied upon
unless tests of controls are performed.
Choice "D" is incorrect. When performing additional tests of controls, an auditor is attempting to support a
lower level of control risk, not higher.

NEW QUESTION: 2
Employees are a greater risk to employers than outsiders. T/F(True/False)
A. False
B. True
Answer: B
Explanation:
Employees are a greater risk to employers than outsiders, because they possess two of the three items required to commit a crime: means and opportunity.

NEW QUESTION: 3
Which web interrogation option supports Internet Explorer browser version independence?
A. Replace Control
B. Create Global Web page
C. Debug Matching
D. Select Element
Answer: B