Which of the Following Elements Ultimately Determines the Amount of Audit

question 29

Multiple Choice

Which of the following elements ultimately determines the amount of audit work that is necessary in the circumstances to afford a reasonable basis for an opinion?

• A)Auditor judgment.
• B)Materiality.
• C)Relative risk.
• D)Reasonable assurance.

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Definitions:

Certain Circumstances

Refers to specific conditions or factors that affect or determine the outcome or application of a rule in a particular case.

Disclaimer

A statement that denies responsibility or relinquishes a right, often used to avoid legal liability.

Warranty of Merchantability

A guarantee that a product will meet reasonable expectations of quality and performance.

Writing

A type of documentation that shows contractual intent and satisfies the statute of frauds requirement.