Risk in Auditing Means That the Auditor Accepts Some Level

question 72

Multiple Choice

Risk in auditing means that the auditor accepts some level of uncertainty in performing the audit function. An effective auditor will:

• A) set the risk level between 5% and 10%.
• B) recognise that risks exist and deal with those risks in an appropriate manner.
• C) perform the audit procedures first and quantitatively set the risk level before forming an opinion and writing the report.
• D) take any means available to reduce the risk to the lowest possible level.

---

Definitions:

Fear of Failure

An emotional state characterized by the dread of not meeting a desired standard or outcome, potentially leading to avoidance behaviors.

Established Dependency

A condition in which an individual relies on a substance or activity to function normally, having developed a physical or psychological need.

Higher Levels of Learning

Advanced stages of acquiring knowledge and skills, involving critical thinking, problem-solving, and the ability to apply learned concepts in new situations.

Apply Standards

The practice of implementing established criteria or guidelines in operations, processes, or evaluations.