If an Auditor Concludes That Internal Controls Are Likely to Be

question 72

Multiple Choice

If an auditor concludes that internal controls are likely to be effective, the preliminary assessment of control risk can be reduced, leading to which of the following impacts on the acceptable risk of incorrect acceptance?

• A) The acceptable risk of incorrect acceptance will be reduced.
• B) The acceptable risk of incorrect acceptance will be increased.
• C) The acceptable risk of incorrect acceptance will be eliminated.
• D) The acceptable risk of incorrect acceptance will not be impacted.

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Definitions:

Network

A connected system of individuals, devices, or organizations designed to distribute information or resources efficiently.

Responsive Supply Chain

A supply chain designed to swiftly adapt to market changes, customer demands, or supply variations, enhancing competitiveness and customer satisfaction.

Markdown

A reduction from the original or retail price of merchandise to increase its saleability.

Source of Revenue

Refers to the various means through which a business generates money, which can include product sales, service fees, or advertising income.