Refer to the components of Internal Controls. Which of the following statement is correct about risk assessment:Question 6AnswerSelect one:a.ideally should be done from the auditing perspectiveb.involves asking what could go wrong to address financial reporting risksc.is a continuous processd.all of the options are correct

The auditor should consider whether the assessment of control risk is confirmedSelect one:a.Before the final audit program is completed.b.Upon completion of understanding of internal control.c.Upon the conclusion of the audit, based on the results of substantive procedures and other audit evidence obtained.d.Upon completion of tests of controls

Which of the following statements concerning control risk is correct?Select one:a.When control risk is at the maximum level, an auditor is required to document the basis for that assessment.b.Control risk may be assessed sufficiently low to eliminate substantive testing for significant transaction classes.c.When assessing control risk, an auditor should not consider evidence obtained in prior audits about the operation of controls.d.Assessing control risk and obtaining an understanding of an entity's internal control may be performed concurrently.

The auditor should perform the following risk assessment procedures to obtain an understanding of the entity and its environment, including its internal control, except:Select one:a.Inquiries of the entity's external legal counsel or of valuation experts that the entity has used.b.Observation and inspection.c.Inquiries of management and others within the entity.d.Analytical procedures.

Discuss the Risk Management process • Through internal processes • Through financial instruments • Through regulation

The main purpose of risk assessment procedures is toSelect one:a.Test the operating effectiveness of controls in preventing, or detecting and correcting, material misstatements at the assertion level.b.Obtain an understanding of the entity and its environment, including its internal control, to assess the risks of material misstatement at the financial statement and assertion levels.c.Detect material misstatements at the assertion level.d.All of these.