Which of These Is One of the Three Components of Audit

question 16

Multiple Choice

Which of these is one of the three components of audit risk?

• A)Control risk.
• B)Rejection risk.
• C)Acceptance risk.
• D)Deception risk.

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Definitions:

Selling Price

The amount of money charged for a product or service, or the sum a customer is willing to pay.

Fixed Manufacturing Cost

Expenses that do not change with the volume of production, such as rent, salaries, and insurance costs related to manufacturing facilities.

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behaviors hold true.

Variable Cost

Costs that vary directly with the level of production or service provision, such as materials, labor, and utilities consumed in the production process.