When Would Auditors Want to Decrease the Risk That Their

question 18

Multiple Choice

When would auditors want to decrease the risk that their audit procedures will not detect a material misstatement?

• A)When detection risk is high
• B)When detection risk is low
• C)When inherent risk is low
• D)When control risk is low

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Definitions:

Trade Promotions

Marketing activities and incentives aimed at wholesalers, retailers, or other organizational buyers to stimulate immediate sales.

Sales Tools

Instruments or resources used to assist in the sales process, including software, techniques, and methodologies.

Wholesalers

Businesses or individuals that purchase large quantities of goods from manufacturers or importers to sell in smaller quantities to retailers or other businesses.

Product Placement

A consumer sales promotion tool that uses a brand-name product in a movie, television show, video game, or a commercial for another product.