Which of the Following Statements Is Not True

question 60

Multiple Choice

Which of the following statements is not True?

• A)Inherent risk is inversely related to the amount of audit evidence whereas detection risk is directly related to the amount of audit evidence required.
• B)Inherent risk is directly related to evidence whereas detection risk is inversely related to the amount of audit evidence required.
• C)Inherent risk is the susceptibility of the financial statements to material error,assuming no internal controls.
• D)Inherent risk and control risk are assessed by the auditor and function independently of the financial statement audit.

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Definitions:

Total Revenues

The overall income received by a business from its operational activities, usually from sales of goods or services.

Price Elastic

Refers to the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Demand Schedules

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices over a given period.

Price Elasticity

The degree to which consumer demand for a product reacts to shifts in its price, showcasing the level of consumer sensitivity to pricing alterations.