When Detection Risk Is Very Low, the Auditor Should

question 89

Multiple Choice

When detection risk is very low, the auditor should:

• A) scan the client's bank reconciliation and verify the mathematical accuracy of the reconciliation.
• B) review the client's bank reconciliation.
• C) prepare the reconciliation from data in the client's possession.
• D) prepare the reconciliation from information obtained directly from the bank.
• E) prepare the proof of cash from data in the client's possession.

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Definitions:

Generalized Anxiety Disorder

A psychological disorder characterized by persistent and excessive worry about different activities and events, often without a specific cause.

Social Phobia

A chronic mental health condition characterized by an intense fear or anxiety of being judged, negatively evaluated, or rejected in a social or performance situation.

Personal Shortcomings

Individual weaknesses or flaws that may hinder personal development or effectiveness.

Depression

A mental health disorder characterized by persistent sadness, loss of interest, and a range of emotional and physical symptoms, impacting daily functioning.