Which of the Following Statements Is True

question 27

Multiple Choice

Which of the following statements is true?

• A) The risk that material misstatement will not be prevented or detected on a timely basis by the internal control can be reduced to zero by effective control activities.
• B) Cash is more susceptible to theft than an inventory of coal because it has a greater inherent risk.
• C) Detection risk is a function of the efficiency of an auditing procedure.
• D) The existing levels of inherent risk, control risk and detection risk can be changed at the discretion of the auditor.

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Definitions:

Job Analysis

The process of studying and collecting information about the duties, responsibilities, and tasks of a specific job.

Organizational Strategy

The comprehensive plan developed by an organization to achieve its long-term goals and success.

Performance Evaluation

The systematic process of assessing and rating an employee's work performance and productivity over a certain period.

Results-Based Methods

Evaluation techniques focused on outcomes or achievements rather than the process, used to ascertain the effectiveness of a program or project.