When the Auditor Has the Same Level of Willingness to Risk

question 35

Multiple Choice

When the auditor has the same level of willingness to risk that material errors will exist after the audit is finished for all five cycles,

• A)the same amount of evidence will be gathered for each cycle.
• B)a different extent of evidence is needed for various cycles.
• C)he/she has not followed generally accepted auditing standards.
• D)the level for each cycle must be no more than 2% so that the entire audit does not exceed 10%.

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Definitions:

Compensation For Work

Compensation for work refers to the payment or benefits received by employees in exchange for their labor, including wages, salaries, and additional benefits.

Working Papers

Documents that accountants, auditors, and other professionals create to evidence the work performed and the conclusions reached during an engagement.

Negligence Cases

Legal actions involving claims that a party's failure to exercise reasonable care resulted in harm to another party.

Evidence Use

The application of information or facts presented in a court to support or refute an argument or claim in a legal case.