The Process Used When Developing an Audit Strategy at the Account

Multiple Choice

The process used when developing an audit strategy at the account or assertion level begins with identifying inherent risks at the account or assertion level.The second step is to _______.

A) determine whether an internal control can mitigate the risk factor
B) increase the extent of detailed substantive procedures performed at year-end
C) perform less extensive detailed substantive procedures at interim
D) determine whether insurance can be purchased to eliminate internal controls