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Which of the following is an accurate statement regarding the risk assessment process of phase I of ...

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Which of the following is an accurate statement regarding the risk assessment process of phase I of ...

Which of the following is an accurate statement regarding the risk assessment process of phase I of the audit process for the sales and collection cycle?

▸ Auditors must perform substantive tests related to assertions deemed to have significant risks.

▸ The auditor must relate control risk for transaction-related audit objectives to balance-related audit objectives in deciding planned inherent risk.

▸ The realizable value balance-related audit objectives are affected by assessed control risk for classes of transactions.

▸ All of these are accurate statements.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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