A Measure of How Willing the Auditor Is to Accept

question 40

Multiple Choice

A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is the

• A) inherent risk.
• B) acceptable audit risk.
• C) statistical risk.
• D) financial risk.

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Definitions:

Herzberg

A psychologist known for the two-factor theory, which distinguishes between factors that cause job satisfaction and dissatisfaction.

Theory Y Assumptions

A management perspective that assumes employees are inherently motivated, enjoy their job duties, and will take on more responsibility if given the opportunity.

Management

The process of dealing with or controlling things or people, often within a business or organization.

Organizational Conditions

The various factors and circumstances within an organization that affect its operations and effectiveness.