Which of the Following Assessments Are Affected by Substantive Tests

question 41

Multiple Choice

Which of the following assessments are affected by substantive tests of transactions?

• A) both acceptable audit risk and control risk
• B) both control risk and planned detection risk
• C) both inherent risk and control risk
• D) both inherent risk and planned detection risk

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Definitions:

Logrolling

A practice in politics where legislators exchange support or votes on issues of mutual interest, often without considering the issues' merit.

Economic Efficiency

An optimal distribution of resources in an economy, where no one can be made better off without making someone else worse off.

Marginal Cost

Marginal cost is the cost incurred by producing one additional unit of a good or service, reflecting changes in variable cost.

Minimum Acceptable Price

The lowest price at which a seller is willing to sell a product or service, often covering at least the costs of production.