When the Auditor Identifies Risk at the Assertion Level

question 136

Multiple Choice

When the auditor identifies risk at the assertion level,

• A) the auditor may need to obtain audit evidence that is more reliable and relevant.
• B) the auditor may choose to conduct substantive testing during interim periods rather than at the end of the period.
• C) the auditor may decrease the sample size.
• D) both a and b

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Definitions:

Excise Tax

A tax charged on specific goods and services, such as tobacco and alcohol, often implemented to discourage their use or raise government revenue.

Upsloping

Typically refers to a graph line that shows an increase in a variable as another variable increases; commonly used in economics to describe supply curves.

Suppliers

Entities that provide goods or services to other individuals or organizations, typically for resale or business use.

Federal Income Tax

A tax levied by the United States government on the annual earnings of individuals, corporations, trusts, and other legal entities.