The Existence of Audit Risk Is Recognized by the Statement

question 33

Multiple Choice

The existence of audit risk is recognized by the statement in the auditor's standard report that the auditor

• A)Obtains reasonable assurance about whether the financial statements are free of material misstatement.
• B)Assesses the accounting principles used and also evaluates the overall financial statement presentation.
• C)Realizes some matters, either individually or in the aggregate, are important while other matters are not important.
• D)Is responsible for expressing an opinion on the financial statements, which are the responsibility of management.

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Definitions:

Gestalt Psychology

A psychological approach that emphasizes the whole of anything is greater than its parts and studies how people interpret and organize information.

Naturalistic Observation Method

A research strategy where behaviors are observed and recorded in their natural environment without manipulation or interference.

Experimental Method

A scientific approach to research in which the researcher manipulates one or more variables to determine their effect on a certain outcome.

Correlational Method

A research technique used to measure the relationship between two or more variables, determining how they may predict or relate to one another without inferring causality.