740. Answer the following questions relating to tests of controls and control risk. a. Tests of controls do not address: (1) How controls were applied. (2) How controls were originated. (3) The consistency with which controls were applied. (4) By what means the controls were applied. b. Which of the following is least likely to be a test of controls? (1) Inquiries of client personnel. (2) Inspection of documents. (3) Observation of confi rmations. (4) Reperformance of controls. c. Tests of controls ordinarily are designed to provide evidence of: (1) Balance correctness. (2) Control implementation. (3) Disclosure adequacy. (4) Operating effectiveness. d. The preliminary assessments of control risk are often referred to as: (1) The assessed level of control risk. (2) The planned assessed level of control risk. (3) Control risk. (4) Internal control objectives risk.

e. At the completion of the audit, the auditors are least likely to know: (1) The assessed level of control risk. (2) The planned assessed level of control risk. (3) Actual control risk. (4) The scope of tests of controls.