In a Financial Statement Audit, Inherent Risk Is Evaluated to Help

question 113

Multiple Choice

In a financial statement audit, inherent risk is evaluated to help an auditor asses which of the following?

• A)The internal audit department's objectivity in reporting a material misstatement of a financial statement assertion it detects to the audit committee
• B)The risk the internal control system will not detect a material misstatement of a financial statement assertion
• C)The risk that the audit procedures implemented will not detect a material misstatement of a financial statement assertion
• D)The susceptibility of a financial statement assertion to a material misstatement assuming there are no related controls

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Definitions:

Mismatch Syndrome

The incongruence felt when there's a discrepancy between an individual's environment and their cultural or personal expectations.

Cultural Values

The core principles and standards that guide the behavior and practices of a cultural group, influencing individual attitudes, customs, and ethics.

Dominant Cultural

Pertaining to the prevailing cultural norms, values, and practices of the majority group within a society.

High Tolerance

The ability or capacity to endure a large amount of substance intake, stress, or differing viewpoints without adverse reactions.