The Risk That the Auditor May Unknowingly Fail to Appropriately

question 6

Multiple Choice

The risk that the auditor may unknowingly fail to appropriately modify his or her opinion on financial statements that are materially misstated is:

• A) analytical procedures risk.
• B) control risk.
• C) tests of details risk.
• D) inherent risk.
• E) audit risk.

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Definitions:

Distress

A negative emotional state that arises when an individual perceives a situation as threatening or beyond their coping capabilities, often leading to discomfort or pain.

External Attributions

The process of attributing the cause of a person's behavior to external factors, circumstances, or the environment.

Diffusion of Responsibility

A psychological phenomenon where individuals in a group are less likely to take action or feel a sense of responsibility due to the presence of others.

Cognitive Dissonance

A state of psychological discomfort experienced when holding contradictory beliefs, attitudes, or thoughts.