Using the Acceptable Audit Risk Model,audit Risk Describes Targeted Assurance,while

question 56

Multiple Choice

Using the acceptable audit risk model,audit risk describes targeted assurance,while control risk and inherent risk are assessed based upon a variety of factors.Of the components of the audit risk model,which is most likely to be set to 100%?

• A)acceptable audit risk
• B)control risk
• C)detection risk
• D)inherent risk

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Definitions:

Market Forces

The natural factors of supply and demand that determine prices, production levels, and resource allocation in a freely competitive economy.

Resistance Price

A price level at which an asset meets pressure on its way up due to a concentration of selling interest, often used in technical analysis of financial markets.

Willingness to Pay

The maximum amount an individual or entity is prepared to spend to purchase a good or service or to avoid something undesirable.

Market Demand Curve

A graphical representation of the quantity of goods demanded at various prices by all consumers in the market.