The Risk That Audit Evidence for an Audit Objective Will

question 28

Multiple Choice

The risk that audit evidence for an audit objective will fail to detect misstatements exceeding performance materiality levels is

• A) audit risk.
• B) control risk.
• C) inherent risk.
• D) planned detection risk.

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Definitions:

Negative Reinforcement

A behavioral technique in which the removal of an undesirable or unpleasant stimulus following a behavior increases the likelihood of that behavior being repeated.

Wearout

The diminishing returns in effectiveness or impact of an advertisement or message over time due to repeated exposure, leading to boredom or annoyance in the audience.

Extinction

In behavioral psychology, the process by which a previously learned behavior decreases in frequency or disappears due to the removal of reinforcement.

Hedonistic Consumption

The pursuit of pleasure and sensory gratification from the consumption of goods and services.