Because Control Risk and Inherent Risk Vary from Cycle to Cycle

question 78

Multiple Choice

Because control risk and inherent risk vary from cycle to cycle, account to account or objective to objective:

• A) detection risk and required audit evidence will also vary.
• B) detection risk will vary, but audit evidence will remain constant.
• C) detection risk will remain constant, but audit evidence will vary.
• D) acceptable audit risk must remain a constant.

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Definitions:

Basic Functions

The fundamental roles or activities that are necessary for a system, organization, or process to operate effectively.

Innovation

The process of creating new ideas, products, or methods that bring about significant improvements or changes.

Cognitive Dissonance

A psychological discomfort experienced by an individual who holds conflicting beliefs, values, or attitudes simultaneously.

Internal Satisfaction

The level of contentment among employees within an organization, typically reflecting the workplace environment, culture, and rewards.