As the Acceptable Level of Detection Risk Decreases, an Auditor

question 48

Multiple Choice

As the acceptable level of detection risk decreases, an auditor may change the:

• A)timing of tests of controls by performing them at an interim date rather than at year-end.
• B)nature of substantive procedures from less effective to more effective procedures.
• C)timing of tests of controls by performing them at several dates rather than at one time.
• D)assessed level of risk of material misstatement to a higher amount.

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Definitions:

Conflicts of Interest

A situation in which a person or entity has competing interests or loyalties that can influence the impartiality of decisions.

Bank Regulators

Authorities or organizations responsible for supervising and regulating banks and financial institutions to ensure financial stability and compliance with laws.

Triggers

Conditions or events that initiate a specific action or process.

Modify or Waive

The act of making changes to the conditions or requirements of an agreement, or choosing not to enforce them.