Risk in Auditing Means That the Auditor Accepts Some Level

question 24

Multiple Choice

Risk in auditing means that the auditor accepts some level of uncertainty in performing the audit function. An effective auditor will

• A) take any means available to reduce the risk to the lowest possible level.
• B) set the risk level between 5% and 10%.
• C) perform the audit procedures first and quantitatively set the risk level before forming an opinion and writing the report.
• D) recognize that risks exist and deal with those risks in an appropriate manner.

Recognize differences and similarities among various motivation theories.

Identify the factors that influence human motivation and how they apply in organizational settings.

Grasp the role of human needs in driving behavior and motivation at work.

Understand the significance and implications of employee engagement in workplace motivation.

---

Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, often seen as a measure of producer welfare.

Consumer Surplus

The disparity between the cost consumers are prepared to pay for a good or service and the cost they actually encounter.

Buyers

Individuals or entities that purchase goods or services in the market.