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:

Exposure to Diversity

The experience of coming into contact with and learning about people from a wide range of different backgrounds, cultures, and perspectives.

Scaffolding

Temporary support that is tailored to a learner’s needs and abilities, and aimed at helping the learner master the next task in a given learning process.

Restitution

The act of making amends for wrongdoing or harm caused, often involving compensation or repair.

Retribution

The concept of punishment imposed on someone as vengeance for a wrong or criminal act.