When the auditor has determined that a significant risk exists, the auditor shall obtain an understanding of the entity's controls, but not including control activities, relevant to that risk.Select one:TrueFalse

The auditor shall obtain an understanding of the major activities that the entity uses to monitor internal control over financial reporting, but excluding those related to those control activities relevant to the audit.Select one:TrueFalse

Controls over the completeness and accuracy of information produced by the entity may be relevant to the audit if the auditor intends to make use of the information in designing and performing further procedures.Select one:TrueFalse

It is a matter of the auditor's professional judgment whether a control, individually or in combination with others, is relevant to the audit.Select one:TrueFalse

Which of the following statements concerning control risk is correct?Select one:a.When control risk is at the maximum level, an auditor is required to document the basis for that assessment.b.Control risk may be assessed sufficiently low to eliminate substantive testing for significant transaction classes.c.When assessing control risk, an auditor should not consider evidence obtained in prior audits about the operation of controls.d.Assessing control risk and obtaining an understanding of an entity's internal control may be performed concurrently.

When obtaining an understanding of controls that are relevant to the audit, the auditor shall evaluate the design of those controls and determine whether they have been implemented, by performing procedures in addition to inquiry of the entity's personnel.Select one:TrueFalse