The Public Company Accounting Oversight Board (PCAOB)has encouraged a risk-based approach to test the effectiveness of ________ as they relate to financial audits.
A) internal controls
B) security processes
C) financial misstatements
D) fraud exposure

Question

Quizplus · Accepted Answer

The PCAOB has encouraged a risk-based approach to test the effectiveness of internal controls as they relate to financial audits. This approach helps auditors identify the areas of highest risk for financial misstatements and focus their testing efforts accordingly. Security processes and fraud exposure may also be tested as part of this approach, but they are not the primary focus.

The Public Company Accounting Oversight Board (PCAOB)has Encouraged a Risk-Based