If Planned Detection Risk Is Reduced, the Amount of Evidence

question 66

Multiple Choice

If planned detection risk is reduced, the amount of evidence the auditor accumulates will

• A) increase.
• B) decrease.
• C) remain unchanged.
• D) be indeterminate.

---

Definitions:

Journal Entry

A record in accounting that logs a business transaction and its effects on various accounts in the double-entry bookkeeping system.

Work in Process Inventory

Goods partially completed by a company but not yet ready for sale, often including raw materials, labor, and overhead costs.

Direct Materials Inventory

An account used to track the cost of raw materials not yet used in production.

Direct Labor Costs

Expenses that can be directly tied to the production of specific goods or services, such as wages of workers.