When an Auditor Increases the Assessed Level of Control Risk

question 40

Multiple Choice

When an auditor increases the assessed level of control risk because certain control procedures were determined to be ineffective,the auditor would most likely increase the

• A) extent of tests of controls.
• B) level of detection risk.
• C) level of inherent risk.

---

Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to buy at a given price in a given time period.

Substitute Resources

Alternative resources that can be used in place of another for the production of goods and services.

Resource

A source or supply from which benefit is produced, typically natural, human, or capital resources used to produce goods and services.

Minimum Wage

The lowest legally allowable pay per hour for workers, set by government policy.