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.

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Definitions:

Product Innovations

The creation or significant improvement of goods or services that offer new or additional benefits to the customer.

Extrinsic Rewards

Benefits or incentives given to individuals by external factors or organizations, such as money, prizes, or recognition.

Creative Behaviour

The capability to come up with original and useful ideas, solutions, or approaches in various contexts.

External Environment

The factors or conditions outside an organization that affect its operations and performance, including political, economic, social, and technological aspects.