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Commerce · Q76

Auditing

Graduate and Post Graduate · Commerce · question 76

Q76

The sequence of steps in the auditor's consideration of internal control is as follows:

A.
Obtain an understanding, design substantive test, perform tests of control, and make a preliminary assessment of control risk
B.
Design substantive tests, obtain an understanding, perform tests of control, and make a preliminary assessment of control risk
C.
Obtain an understanding, make a preliminary assessment of control risk, perform tests of control, design substantive procedures
Answer
D.
Perform tests of control, obtain and understanding, make a preliminary assessment of control risk, design

Answer: Option C

Solution

Answer: Option C
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