The Risk the Auditor Is Willing to Take of Accepting

question 58

Multiple Choice

The risk the auditor is willing to take of accepting a balance as correct when the True misstatement in the balance under audit is greater than the tolerable misstatement is

• A)the upper bound.
• B)the tolerable risk.
• C)the acceptable risk of incorrect acceptance.
• D)the lower bound.

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Definitions:

Dementia

A chronic or persistent disorder of the mental processes caused by brain disease or injury, marked by memory disorders, personality changes, and impaired reasoning.

Hip Replacement

A surgical procedure in which a damaged hip joint is replaced with an artificial one.

Cognitive Change

Any alteration in cognitive function, which can include memory, problem-solving, attention, or language abilities, often due to aging, neurological conditions, or injuries.

Disorientation

A state of confusion regarding time, place, or identity, often as a symptom of neurological or psychiatric conditions.