Based on Audit Evidence Gathered and Evaluated, an Auditor Decides

question 42

Multiple Choice

Based on audit evidence gathered and evaluated, an auditor decides to increase the assessed level of control risk from that originally planned. To achieve an overall audit risk level that is substantially the same as the planned audit risk level, the auditor would:

• A)decrease substantive testing.
• B)decrease detection risk.
• C)increase inherent risk.
• D)increase materiality levels.

---

Definitions:

Environmental Analysis

The process by which strategists evaluate the external opportunities and threats that could affect the future direction and dynamics of a business.

Fewer Resources

The state of having limited assets, funds, or materials to work with or utilize in a project, business, or operation.

Philanthropic Goodwill

The positive reputation and relationships a business builds through charitable actions, donations, or involvement in community services.

Internal Environment

The conditions, entities, events, and factors within an organization that influence its activities and choices, including its culture, employees, and management.