An Auditor Has Computed the Revised Level of Detection Risk

question 81

Multiple Choice

An auditor has computed the revised level of detection risk by direct use of the audit risk model. This means that the auditor must have:

• A) assessed control risk at the maximum.
• B) used a flowchart to document the understanding of the complete internal control structure.
• C) used the primarily substantive approach in planning the audit.
• D) quantified all the relevant risk assessments.
• E) assessed detection risk at the minimum.

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Definitions:

-Lith

A suffix meaning "stone" or "calculus," used in medical terms related to calculous diseases.

Auditory Canal

The tube running from the outer ear to the middle ear, also known as the ear canal, which conducts sound waves to the eardrum.

Cerumen

A yellowish waxy substance secreted in the ear canal, commonly known as earwax.

Auricle

Another term for the external portion of the ear; it collects sound waves and directs them into the ear canal.