On the Basis of Audit Evidence Gathered and Evaluated, an Auditor

question 182

Multiple Choice

On the basis of audit evidence gathered and evaluated, an auditor decides to increase the assessed level of control risk, and therefore the risk of material misstatement, 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) Increase inherent risk.
• B) Increase materiality levels.
• C) Decrease substantive testing.
• D) Decrease detection risk.

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Definitions:

Life Expectancy

The average period that a person may expect to live.

Mortality Rate

A measure of the frequency of occurrence of death in a defined population during a specified interval.

Cohort Death Rate

is a measure of mortality rates within a defined cohort of individuals over a specific period of time, illustrating the rate at which members of the cohort die.

Grandparents

The parents of a person's father or mother – paternal or maternal.