Which of the Following Is True Regarding Audit Risk for Segments

question 5

Multiple Choice

Which of the following is true regarding audit risk for segments?

• A) Control risk must be assessed at the same level for all accounts.
• B) Factors affecting inherent risk do not differ from account to account.
• C) Acceptable audit risk is ordinarily assessed by the auditor during the substantive test of balances phase and is held constant for each major cycle and account.
• D) In some cases, a lower acceptable audit risk may be more appropriate for one account than for others.

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Definitions:

Manipulation

An attempt to influence or control the behavior or emotions of others for one’s own purposes, often without their consent.

Sexual Response Cycle

The sequence of physical and emotional changes that occur as a person becomes sexually aroused and participates in sexually stimulating activities, including phases like excitement, plateau, orgasm, and resolution.

Genitals

The reproductive organs, especially the external sex organs.

Engorged

Swollen with fluid or blood; typically refers to body parts that have filled with such to an extreme level.