When the Auditor Concludes There Is a Risk of Material

question 75

True/False

When the auditor concludes there is a risk of material misstatement due to fraud, auditing standards do not require to automatically treat those risks as significant risks.

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Definitions:

Inhibited

Characterized by a restraint or suppression of behavior, emotion, or action, often due to social or internal psychological factors.

Temperament

A person's or animal's nature, especially as it permanently affects their behavior, often considered to be innately determined.

PKU

Phenylketonuria, a genetic disorder resulting from the inability to metabolize the amino acid phenylalanine, leading to developmental problems if not treated.

Color-blindness

A deficiency in the way one sees color, making it difficult to distinguish certain shades or colors.