[Mole351]

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

a. Inquiry and analytical procedures.

b. Reperformance and observation.

c. Comparison and confirmation.

d. Inspection and verification.

The answer is B – which is a test of controls. Is it through process of elimination in that none of the other combinations go together? It confuses me as there is a section in the Wiley book just prior to the testing of controls that addresses “risk assessment procedures” under “obtaining an understanding of internal control.” i.e. inquiries and inspection are two of the procedures for assessing control risk. Since the question explicitly states “assessing control risk” I would automatically assume to pull from that set of procedures (inquiries, observations, inspection, and tracing)…the actual testing items wouldn’t even come to mind because again, there are specifically procedures for “assessing control risk” that do not include the testing of controls (for those I would look for part of the question to say something like “verification” or “operating efficiently” or “test”)

I guess the whole process from beginning to end (assessment and testing) is considered control risk assessment?

Getting pretty frustrated – it’s very difficult to keep all these things straight, especially when they’re intentionally trying to trip you up. Right when I think I have something down I see something like this and realize I’m not even close.

Sorry for the rant…but thanks for any feedback provided!

FAR - 87 (5/15)
AUD - 93 (8/15)
REG - 86 (2/16)
BEC - 87 (5/16)

[Anonymous]

“reperformance” makes b the correct answer.

it's used for test of controls.

since the question is asking for assessing control risk, i would first eliminate all the choices that include techniques that wouldn't be used during risk assessment stage itself.

so if you look at the other choices,

c & d are wrong because confirmation & verification are used for substantive test.

although analytical procedures are used during risk assessment stage to assess inherent risk, you can eliminate it

because analytical procedures aren't used to assess control risk

i hope this helps and gluck studying!

[Anonymous]

I hear Jeff's voice now from the audio… “Controls are tested using, WHAT?… iron”

[trish_1234]

A Inquiry and analytical procedures.

b. Reperformance and observation.

c. Comparison and confirmation.

d. Inspection and verification.

A is not bc analytical procedures do not test controls

c is not because comparison is not a procedure

D is not because verification is not a procedure

so it has to be B because reperformance and observation are both procedures …….

join aud study group 🙂

AUD 69, 92 7/15 Gleim and Ninja test bank
FAR sometime in 10/15 Gleim
BEC not taken
REG not taken

[Author]

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