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An auditor uses the audit evidence provided by the understanding of internal control and the assessment...

An auditor uses the audit evidence provided by the understanding of internal control and the assessment of the risks of material misstatement to determine the nature, timing, and extent of Tests of controls.

Compliance requirements.

Attribute tests.

Further audit procedures.

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Answer #1

Answer is option 4

Further audit procedures.

The risk assessment of auditor serves as a basis for further audit procedures. The audit evidence is used by the auditor in sufficient detail to form a basis for the risk assessment of material misstatement. Then, the designing and performance of further audit procedures are carried out. According to international standard on Auditing , the auditor is required to make risk assessments at the level of financial statement and assertion by applying an appropriate understanding.

of the entity and its environment, including its internal control. I

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