As the Acceptable Level of Detection Risk Increases, an Auditor

question 20

Multiple Choice

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

• A)assessed level of control risk from a lower level to a higher level.
• B)assurance provided by tests of controls by using a larger sample size than planned.
• C)timing of substantive procedures from year-end to an interim date.
• D)nature of substantive procedures from less effective to more effective procedures.

---

Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell.

Budget Proportion

Budget proportion refers to the allocation or division of an individual's or entity's budget among various expenses or categories.

Price Elasticity

An indicator of how sensitive the demand or supply for a product or service is to variations in its cost.

Time Available

The amount of time one has free for activities beyond commitments like work or sleep; may refer to leisure or additional productive time.