A Significant Risk Is _______

question 4

Multiple Choice

A significant risk is _______.

• A)a risk that the auditor should not attempt to address
• B)an identified and assessed risk of immaterial misstatement that, in the auditor's judgment, requires special audit consideration
• C)an identified and assessed risk of material misstatement that, in the auditor's judgment, requires special audit consideration
• D)a risk for which the auditor should immediately notify the SEC

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Definitions:

Accept Responsibility

Recognizing and admitting one's role or involvement in a given situation, taking accountability for actions and their consequences.

Door-In-The-Face Technique

A compliance strategy that involves making a large request that is expected to be refused so that a smaller request will be accepted.

Social Facilitation Method

A process by which the presence of others enhances an individual's performance on tasks.

Foot-In-The-Door Technique

A persuasion strategy where a small request is made first, with the aim of getting compliance for a larger request later.