If an Auditor Believes the Chance of Financial Failure Is

question 39

Multiple Choice

If an auditor believes the chance of financial failure is high and there is a corresponding increase in business risk for the auditor, acceptable audit risk would likely

• A) be reduced.
• B) be increased.
• C) remain the same.
• D) be calculated using a computerized statistical package.

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Definitions:

Proto-oncogene

A normal gene that can become an oncogene due to mutations or increased expression, potentially leading to cancer.

Growth Factor

A naturally occurring substance capable of stimulating cellular growth, proliferation, healing, and cellular differentiation.

Interphase

Interphase is the phase of the cell cycle during which a cell prepares for division by growing in size, replicating its DNA, and conducting other normal cell functions.

Hereditary Material

Genetic material passed from parents to offspring, most commonly DNA, which carries the genetic instructions for growth, development, functioning, and reproduction of all known organisms and many viruses.