Use of Auditor Judgment or of a Risk Matrix Is

question 13

Multiple Choice

Use of auditor judgment or of a risk matrix is necessary in revising planned detection risk whenever:

• A) risk assessments are not quantified.
• B) assessed control risk at the account balance level does not support the planned level of control risk.
• C) control risk is assessed above the minimum.
• D) control risk is assessed below the maximum.
• E) tests of controls reveal substantial deviations from prescribed policies.

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Definitions:

Orienting Reflex

An unlearned response in which an organism attends to a stimulus.

Unlearned Response

A natural, instinctive reaction that does not require prior learning or experience to occur.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a pause.

Continuous Reinforcement

A type of learning in which a behavior is reinforced every time it occurs, leading to rapid learning.