When Assessing Risk, It Is Important to Remember That

question 57

Multiple Choice

When assessing risk, it is important to remember that

• A) for acceptable audit risk, the SEC decides the risk the CPA firm should take for public clients.
• B) inherent risk can be changed by the auditor.
• C) detection risk can only be determined after audit risk, inherent risk, and control risk are determined.
• D) control risk is determined by company management since they are responsible for internal control.

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Definitions:

Intervention

Actions taken to improve a situation, especially in the context of medical treatment or social support.

Meta-Analyses

Systematic reviews combining results from multiple studies to determine overall trends or effects.

Methodologically Strong

Indicates research or studies that are well-designed and executed according to rigorous and systematic principles, ensuring reliability and validity of findings.