A Detection Risk of 1

question 30

Multiple Choice

A detection risk of 1.5 or 150% means _______.

• A)there would be a 150% risk that the auditors' procedures will not be effective in detecting a material misstatement
• B)auditors will need to undertake 1.5 times the audit procedures planned in the initial stages of the audit
• C)there would be a 150% risk that the auditors' procedures will be effective in detecting a material misstatement
• D)auditors will perform extensive detailed testing of related account balances and use larger sample sizes because a 1.5 detection risk is a low detection risk

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Definitions:

Charles Darwin

A 19th-century naturalist and geologist, best known for his contributions to the science of evolution, particularly the theory of natural selection.

Cognitive Neuroscience

The scientific field that studies the biological processes and aspects that underlie cognition, with a specific focus on the neural connections in the brain which are involved in mental processes.

Psychology

The scientific study of the mind and behavior, including both the conscious and unconscious phenomena, as well as thought processes in humans and animals.

Philosophy

The examination of the essential characteristics of knowledge, reality, and being, particularly in the context of an academic field.