Auditors can mitigate risk, like the failure to detect material dollar errors in the financial statements, by doing what?

A. Assessing control risk.
B. Performing tests of controls.
C. Performing substantive procedures.
D. Obtaining a client representation letter.


Answer: C

Business

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In a ring topology

a. all nodes are of equal status b. nodes manage private programs and databases locally c. shared resources are managed by a file server which is a node on the ring d. all of the above

Business

Which of the following is NOT a way to accurately determine the financial performance of a company?

A) carefully examining one year of data B) evaluating a company's performance from year to year C) comparing a company's performance with a competing company D) comparing a company's performance with the same industry as a whole

Business

Which of the following is not considered important in the proper allocation of overhead costs?

a. Forecasting production activity b. Estimating total overhead costs c. Selecting an appropriate activity base d. Estimating the selling price of the product

Business

The difference between actual and budgeted fixed factory overhead is referred to as a fixed overhead spending variance

Indicate whether the statement is true or false

Business