7.

A control that reduces the risk that on existing or potential control weakness will

result in a failure to meet a control objective is referred to as a:

a. Compensating control.

b. Conditional control.

c. Non-routine control.

d. Walkthrough control.

128.Which of the following is not a characteristic of the primarily substantive

approach?

a. The auditor usually gathers all or most of the evidence with substantive tests.

b. Usually little or no reliance is placed on controls.

c. The assessment of control risk is usually at or near maximum level.

d. Extensive tests of controls are performed.

129.Which Of the following is not a characteristic of the lower control risk approach?

a. Control risk is usually assessed at maximum level.

b. Substantive tests are usually restricted.

c. The auditor usually plans to place considerable reliance on the controls.

d. The auditor plans to perform extensive tests of controls.

130.If the auditor uses the primarily substantive approach instead of the lower

control risk approach

a. A higher level of understanding of internal control is required.

b. The auditor plans to assess control risk at a lower level.

c. The auditor plans a heavier reliance on substantive tests

d. The auditor plans to restrict substantive tests