Understanding Components of Internal Control and Assessing the Level of Control

Multiple Choice

Understanding components of internal control and assessing the level of control risk are primarily used by the auditor to:

A) determine the nature, timing and extent of substantive tests for financial statement assertions.
B) modify the initial assessments of inherent risk and preliminary judgements about materiality levels.
C) ascertain whether the opportunities to allow any person to both perpetrate and conceal irregularities are minimised.
D) determine whether procedures and records concerning the safeguarding of assets are reliable.