In assessing control risk, an auditor ordinarily selects from a variety of techniques, including:

Question

Quizplus · Accepted Answer

Choice "B" is correct. Tests of controls used in assessing control risk ordinarily include procedures such as inquiry of appropriate entity personnel, inspection of documents and reports indicating performance of the policy or procedure, observation of the application of the policy or procedure, and reperformance of the application of the policy or procedure by the auditor. Choice "A" is incorrect. Analytical procedures are used in planning the audit, as a form of substantive testing, and as a final review. They are not useful in assessing control risk. Choice "C" is incorrect. Confirmation is a form of substantive testing, not a test of controls for assessing control risk. Choice "D" is incorrect. Verification is a form of substantive testing, not a test of controls for assessing control risk.

In Assessing Control Risk, an Auditor Ordinarily Selects from a Variety