Because Control Risk and Inherent Risk Vary from Cycle to Cycle

question 53

Multiple Choice

Because control risk and inherent risk vary from cycle to cycle, account to account, or objective to objective,

• A) audit risk must also change.
• B) planned detection risk and required audit evidence will also vary.
• C) planned detection risk will vary but audit evidence will remain constant.
• D) planned detection risk will remain constant but audit evidence will vary.

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Definitions:

Debt Ratio

A financial metric comparing the total debt of a company to its total assets, indicating the proportion of a company's assets that are financed by debt.