When Using the Audit Risk Model

question 79

Multiple Choice

When using the audit risk model,

• A) auditors find it relatively easy to measure the components of the model.
• B) many auditors use broad and subjective measurement terms.
• C) auditors find it easy to measure the amount of evidence implied by a given planned detection risk.
• D) auditors are only concerned with understating accounts.

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Definitions:

Integrity

Adhering to the appropriate code of law and ethics and being honest and trustworthy.

Confidentiality

The ethical principle or legal right that a physician or other professional will not disclose information about a client or patient to others without the individual's consent.

Addendum

An additional document appended to a contract, agreement, or other document, containing supplementary information or modifications.

Groupthink

A mode of thinking in highly cohesive groups in which the desire to reach unanimous agreement overrides the motivation to adopt proper rational decision-making procedures.