Which Is a True Statement About Audit Risk

question 7

Multiple Choice

Which is a True statement about audit risk?

• A)Audit risk measures the risk that a material misstatement could occur and not be detected by internal control.
• B)When auditors decide on a higher acceptable audit risk,they want to be more certain that the financial statements are not materially misstated.
• C)Audit assurance is the complement of acceptable audit risk.
• D)There is an inverse relationship between acceptable audit risk and planned detection risk.

Understand the effect of core values on organizational practices and hiring decisions.

Note the role and challenges of small businesses and entrepreneurs in the economy.

Recognize the dynamic and fast-paced nature of managerial work and the necessity for flexibility, teamwork, and speed in achieving strategic and operational goals.

Understanding the balance between effectiveness and efficiency in management.

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Definitions:

Intuitions

Immediate understanding or knowledge of something without the need for conscious reasoning.

Nussbaum

Likely refers to Martha Nussbaum, an American philosopher and academic known for her work on ethics, human rights, and political philosophy.

W.D. Ross

A philosopher known for his contributions to deontological ethics, emphasizing the role of moral duties and the concept of prima facie obligations.

Pluralistic Approaches

Refers to strategies or methods that incorporate diverse perspectives and approaches to understand or address an issue.