When Management Has an Adequate Level of Integrity for the Auditor

question 26

Multiple Choice

When management has an adequate level of integrity for the auditor to accept the engagement but cannot be regarded as completely honest in all dealings, auditors normally:

• A) increase acceptable audit risk and reduce inherent risk.
• B) reduce acceptable audit risk and increase inherent risk.
• C) reduce inherent risk and control risk.
• D) increase inherent risk and control risk.