Auditors Respond to Risk By

question 81

Multiple Choice

Auditors respond to risk by:

• A) changing the extent of testing and type of audit procedures.
• B) modifying the assessment of materiality.
• C) increasing the amount of evidence collected.
• D) all of the above

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Definitions:

Fundamental Attribution Error

The cognitive bias of attributing other people's actions to their character or personality while underestimating situational influences.

Selective Perception

The process by which individuals perceive what they want in media messages while ignoring opposing viewpoints.

Situation Attributes

The characteristics or features of a particular situation or context that can influence outcomes or decisions.

Beliefs, Values, or Needs

Refer to the fundamental convictions, principles, or requirements that guide an individual's or group's behavior and decision-making processes.