At Every Audit Engagement the Auditor Is Required to Consider

question 91

Multiple Choice

At every audit engagement the auditor is required to consider that there could be significant risks of misstatement for revenue recognition.At ABC Ltd. ,the auditor has concluded that,yes,there are material risks of misstatement associated with revenue recognition.How does this affect the extent of testing for accounts receivable?

• A)Audit risk will be increased.
• B)Inherent risks will be decreased.
• C)Decreased control testing is required.
• D)Increased substantive testing is required.

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Definitions:

Primary Motor Cortex

A region of the brain responsible for the initiation of voluntary muscle movements.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for problem solving, judgment, motor function, and speech among other functions.

Voluntary Movement

Voluntary movement involves conscious control over muscle movements, enabling actions such as walking, talking, or picking up objects.

Association Areas

Regions of the cerebral cortex that integrate information from various parts of the brain to perform higher functions such as thinking, learning, and remembering.