Establishing an Appropriate Level of Professional Skepticism Is Achieved by ________

question 26

Multiple Choice

Establishing an appropriate level of professional skepticism is achieved by ________.

• A)gaining an understanding of the entity-level (or entity-wide) internal control components
• B)talking to the internal audit function
• C)discussions with the client's attorney
• D)a directive from the audit partner in charge

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Definitions:

Insurance Premium

The amount of money that an individual or business must pay for an insurance policy.

Financial Risk

The possibility of losing money on an investment or business venture.

Risk-Averse

A characteristic describing individuals or entities that prefer to avoid risks and favor more certain outcomes.

Marginal Utility

The additional satisfaction or utility that a consumer derives from consuming one more unit of a good or service.