Risk in Auditing Means That the Auditor Accepts Some Level

question 80

Multiple Choice

Risk in auditing means that the auditor accepts some level of uncertainty in performing the audit function.An effective auditor will:

• A) set the risk level between 5% and 10%.
• B) take any means available to reduce the risk to the lowest possible level.
• C) recognise that risks exist and deal with those risks in an appropriate manner.
• D) perform the audit procedures first and quantitatively set the risk level before forming an opinion and writing the report.

---

Definitions:

Debt Collector

A person or company tasked with collecting money owed on past due accounts from debtors.

Original Terms

The initial conditions and stipulations as set forth in an agreement or contract, before any amendments or modifications.

Creditor Beneficiary

A third party that benefits from a contract, particularly in contexts where the promisee's intention is to pay a debt to the beneficiary.

Promisor Directly

Pertains to the person who has made a promise or commitment being the one to fulfill that obligation without intermediaries.