Suppose Auditors Assess Inherent Risk and Control Risk as Low

question 38

Multiple Choice

Suppose auditors assess inherent risk and control risk as low, 25% and 8% respectively.If auditors want to keep audit risk relatively low at 5%, then what is detection risk?

• A)2.50 or 250%
• B).02 or 2%
• C).05 or 5%
• D)2.00 or 200%

Identify the historical context and contributions of George Kelly to psychology.

Understand the role of personal constructs in personality differences and psychological health.

Recognize the function of anxiety and its relation to predictability and personal constructs according to Kelly.

Acknowledge the role of the self in cognitive processing and memory.

---

Definitions:

Return

The gain or loss on an investment over a specific period, usually expressed as a percentage of the investment's initial cost.

Total Risk

The complete range of risks associated with an investment, including both systemic and unsystematic risk.

Modigliani

Refers to Franco Modigliani, an Italian-American economist known for his work on corporate finance, the Modigliani-Miller theorem, and the life-cycle hypothesis of saving.

Developed

Pertains to countries that have a high level of industrialization, a high standard of living, and a well-established economic structure.