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:

Surge Protector

A device that protects electrical appliances from voltage spikes by blocking or shorting to ground any unwanted voltages above a safe threshold.

Line Conditioner

A device that improves the quality of electrical power by stabilizing voltage and filtering noise and spikes.

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A command used to refresh local and Active Directory-based Group Policy settings.

Gpresult

A command that displays Group Policy settings. A Group Policy determines how a computer is configured for both system and user (or a group of users) settings.