If Detection Risk Is Reduced,the Amount of Evidence the Auditor

question 49

Multiple Choice

If detection risk is reduced,the amount of evidence the auditor accumulates will

• A)increase.
• B)decrease.
• C)remain unchanged.
• D)be indeterminate.

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Definitions:

Registered

The status of having one's name or details officially recorded, typically in a specific list or database, for purposes such as legal acknowledgment or qualification.

Insider

(1) A corporate director or officer, or other employee or agent, with access to confidential information and a duty not to disclose that information in violation of insider-trading laws. (2) In bankruptcy proceedings, an individual, partner, partnership, corporation, or officer or director of a corporation (or a relative of one of these) who has a close relationship with the debtor.

Inside Information

Privileged, non-public information that could provide an unfair advantage in financial trading or decision-making.

Securities Exchange Act

A U.S. law enacted in 1934 to govern the trading of securities, such as stocks and bonds, in order to protect investors and maintain fair and efficient markets.