When an Auditor Increases the Assessed Level of Control Risk

question 779

Multiple Choice

When an auditor increases the assessed level of control risk because certain control activities were determined to be ineffective, the auditor would most likely increase the:

• A) Extent of tests of controls.
• B) Level of detection risk.
• C) Extent of tests of details.
• D) Level of inherent risk.

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Definitions:

Benzyl Alcohol

A type of alcohol with the formula C6H5CH2OH, characterized by a benzene ring attached to a CH2OH group.

Methyl Benzoate

An organic compound formed from the esterification of benzoic acid with methanol, characterized by a sweet smell and used in perfumery.

Aldehyde Treatment

A chemical process involving the reaction of an aldehyde group, often resulting in the introduction of new functional groups.

LiAlH4

Lithium aluminium hydride, a powerful reducing agent widely employed in organic chemistry for reducing carbonyl compounds to alcohols.