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If Inherent Risk Is Determined to Be High for an Account

Question 4

Multiple Choice

If inherent risk is determined to be high for an account or assertion, the next step is to _______.


A) determine if an internal control is in place to mitigate the risk of a material misstatement
B) determine if professional skepticism is being used
C) determine whether management is aware of the risk
D) perform less extensive detailed substantive tests

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