Performance Materiality as Set by the Auditor

question 26

Multiple Choice

Performance materiality as set by the auditor:

• A) does not affect inherent or control risks.
• B) increases inherent risk only.
• C) increases control risk only.
• D) increases inherent risk and control risk.

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Definitions:

Pie Chart

A circular statistical graphic divided into slices to illustrate numerical proportion.

Bar Graph

A graph that uses bars of varying heights or lengths to show the comparative sizes of different observations of a variable.

Linear Curve

A linear curve is a straight line graphically showing the relationship between two variables, with a constant slope and no curvature.

Slope

In mathematics, the measure of the steepness or incline of a line, expressed as the ratio of the vertical change to the horizontal change.