Assessments

You can find the answers to the previous assessment questions in this section.

Audit project management

1. Answer: A. To understand services and their allocation to business processes
   Explanation: Service-level architecture relies on the principle of multiple clients. The first step of the assignment is to understand how the services are allocated to different business units. Once this is done, the auditor will have a sufficient idea about the risk environment on the basis of which further audit procedures can be developed.
2. Answer: A. Reasonable assurance about the coverage of material items
   Explanation: The auditor does not provide absolute assurance but only reasonable assurance. Absolutes are not attainable due to the inherent limitation of audits, such as professional judgment, sampling, and the use of testing.
3. Answer: B. Discovery sampling
   Explanation: Discovery sampling is widely used to detect a fraudulent transaction. Even if only a single error is discovered, there...