Question 1
An auditor traces the sales prices to the authorized price list in effect at the date of the transaction. Which of the following procedures has the auditor performed?
◦ inquiry
◦ observation
◦ reperformance
◦ examination
Question 2
If the results of tests of controls support the design and operations of controls as expected, the auditor uses ________ control risk as the preliminary assessment.
◦ a lower
◦ the same
◦ a higher
◦ either a lower or higher