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Auditing

Lecture 7 & 8

Audit risk, inherent and control risk, internal controls, substantive procedures, and audit sampling.

Question 17 of 57

In evaluating controls, what does "design" mean?

Pick one: press 1-4 on your keyboard or click an option.
A

Reperforming the client's bank reconciliation only

B

Considering whether the control is capable of preventing, or detecting and correcting, material misstatements

C

Counting how often the control is performed

D

Confirming that the control has operated effectively throughout the year