The Risk That the Auditors' Procedures Will Lead Them to Conclude

question 14

Multiple Choice

The risk that the auditors' procedures will lead them to conclude that a material misstatement does not exist in an account balance when in fact such a misstatement does exist is referred to as:

• A)Account risk.
• B)Control risk.
• C)Detection risk.
• D)Inherent risk.

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Definitions:

Placebo Effect

A phenomenon in which a fake treatment, an inert substance like a sugar pill, can sometimes improve a patient's condition simply because the person has the expectation that it will be helpful.

Experimenter Effect

The influence that the experimenter's presence, behavior, or characteristics can have on the results of a research study.

Behaviorism

A theory in psychology which states that all behaviors are learned through interactions with the environment, and is centered on the belief that internal states such as thoughts, feelings, and motives are not necessary for understanding behavior.

Psychoanalysis

A method of mental therapy originating from Sigmund Freud, focusing on unconscious processes and resolved through dialogue between patient and psychoanalyst.