Auditors follow a four- step approach to reduce assessed control risk. Which is NOT one of them?
A) Identify key controls that should reduce control risk for each transaction- related audit objective.
B) Apply the transaction- related objectives to the class of transactions being tested.
C) Develop appropriate tests of controls for all internal controls that are used to reduce the preliminary assessment of control risk below maximum (key controls).
D) Perform analytical procedures on the transaction cycle tested.

Question

Quizplus · Accepted Answer

The fourth step in the auditor's approach is to perform substantive procedures on the transaction cycle tested, not analytical procedures. Therefore, choice D is the correct answer as it is not one of the four steps in reducing assessed control risk. The other choices, A, B, and C are all steps in the auditor's approach.

Auditors Follow a Four- Step Approach to Reduce Assessed Control