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:

Childhood Experiences

Events or interactions that occur during the early years of life, significantly impacting an individual's development and personality.

Psychoanalytic Psychology

A branch of psychology that explores the role of unconscious motives and conflicts in determining human behavior, originated by Sigmund Freud.

Cognitive Psychology

A branch of psychology focused on the study of mental processes, including perception, memory, thought, and problem-solving.

Behaviorism

An educational theory suggesting that conditioning is the root through which behaviors are learned.