The Risk of Assessing Control Risk Too Low Can Lead

question 5

Multiple Choice

The risk of assessing control risk too low can lead to ________.

• A)the auditor performing more work than needed,thus wasting resources
• B)the auditor failing to do additional work that should be done
• C)poor choice of procedures
• D)expanding sample sizes required for statistical sampling of account balances

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Definitions:

Personally Liable

Being directly responsible for fulfilling a financial obligation or settling a debt from personal assets.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock, rather than cash.

Revoked

To take back, withdraw, or annul an offer, right, or privilege.

Investment Grade

A rating that indicates a low to moderate risk of default for bonds and other securities, suggesting they are a secure investment.