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NEW QUESTION: 1
After obtaining an understanding of the entity and its environment, including its internal control, an auditor
decided to perform tests of controls. This is likely because:
A. Evidence to support a reduction in control risk is not available.
B. An increase in the assessed level of control risk is justified for certain financial statement assertions.
C. There were many internal control weaknesses that could allow errors to enter the accounting system.
D. The auditor's risk assessment is based on the effective operation of controls.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. After obtaining an understanding the entity and its environment, including its internal
control, the auditor may make a risk assessment that assumes controls are operating effectively. In such
cases, the auditor performs tests of controls to obtain evidence supporting this assessment.
Choice "B" is incorrect. If evidence to support a reduction in control risk is not available, tests of controls
would, by definition, not be possible.
Choice "C" is incorrect. When auditors decide to perform tests of controls, they have made a preliminary
assessment that controls are operating effectively. Accordingly, the performance of tests of controls is not
indicative of an increase in the assessed level of control risk.
Choice "D" is incorrect. When many internal control weaknesses are identified, the auditor would not be
likely to perform tests of controls. The assessed level of control risk is increased, and more reliance would
be placed on substantive tests as opposed to tests of controls.

NEW QUESTION: 2
Which four options are the top-level key areas of the business model canvas?
A. infrastructure, offerings, customers, finances
B. products, services, solutions, outcomes
C. markets, channels, partners, customers
D. resources, products, customers, markets
Answer: A

NEW QUESTION: 3
You need to disable User1's access to view the data in the Customer table.
Which statement should you use?

A. Option B
B. Option C
C. Option D
D. Option A
Answer: B

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