Auditors Must Use Professional Judgment to Determine the Impact a Risk

question 379

Multiple Choice

Auditors must use professional judgment to determine the impact a risk factor may have on the use off audit resources. Risk can be controlled by various preventive measures such as:

• A) Adding personnel to a function
• B) Installing burglar alarms
• C) Increasing the frequency and level of management review implement tighter standards
• D) All of these

Understand the impact of sample size on the width of the confidence interval.

Grasp the necessity of having a confidence level less than 100% for a confidence interval to be useful.

Understand different forms of employee turnover and their implications for the organization.

Comprehend the concept of fairness (interactional, procedural, and outcome) in workplace justice.

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Definitions:

Counterconditioning Techniques

Methods used in behavior therapy to substitute a new response for a maladaptive one through conditioning.

Functional Behavioral Assessments

Evaluative processes that identify specific behaviors, their triggers, and consequences to plan effective interventions.

Desensitization Studies

Research into methods for reducing or eliminating negative or phobic reactions to specific stimuli by gradual exposure or counterconditioning.

Clinical Populations

Groups of individuals receiving clinical intervention, often characterized by shared diagnostic features or treatment needs.