The Two Major Factors Affecting Acceptable Audit Risk Are

question 39

Multiple Choice

The two major factors affecting acceptable audit risk are

• A) inherent risk and the intended uses of the financial statements.
• B) control risk and the intended uses of the financial statements.
• C) the likely statement users and their intended uses of the statements.
• D) the audit firm and the intended uses of the statements.

---

Definitions:

Social Connections

The relationships and networks that individuals form with others.

Global Manager

A leader or executive who oversees operations, strategies, and teams across multiple countries, understanding diverse cultural and business practices.

Contrast Error

A type of cognitive bias in performance evaluation where an individual is assessed based on a comparison with others rather than on objective criteria.

Average Applicants

Individuals who apply for a position or opportunity and whose qualifications, skills, and experiences are considered to be at a median level among all applicants.