The Two Major Factors Affecting Acceptable Audit Risk Are

question 39

Multiple Choice

The two major factors affecting acceptable audit risk are

• A) inherent risk and the intended uses of the financial statements.
• B) control risk and the intended uses of the financial statements.
• C) the likely statement users and their intended uses of the statements.
• D) the audit firm and the intended uses of the statements.

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Definitions:

Coercion

The practice of forcing another party to act in an involuntary manner by use of threats or pressure.

Resistance to Change

The act of opposing or struggling with modifications or transformations within organizational processes, technologies, or cultures.

Resistance to Change

The act of opposing or struggling with modifications or transformations within an organization or in one's personal life.

Innovation Inertia

The resistance to change or the slowness in adopting new ideas and innovations within an organization.