If Audit Risk Is Increased, What Happens to Detection Risk

question 3

Multiple Choice

If audit risk is increased, what happens to detection risk?

• A) It stays the same.
• B) It increases.
• C) It changes based upon the audit procedures conducted.
• D) It decreases.

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Definitions:

Fiscal Policies

Government policies regarding taxation and expenditure decisions designed to influence a country's economy, including methods to manage inflation, unemployment, and stimulate economic growth.

Eastern Europe

A region that encompasses many countries to the east of Germany and west of the Ural Mountains, known for its rich history and cultural diversity.

Soviet Union

A former federal socialist state in Eastern Europe and Northern Asia, existing from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR).

Free Market Reforms

Changes in economic policy aimed at reducing government intervention to allow for a more autonomous operation of the market and competition.