Risk Assessment Procedures Are Performed by Auditors During an Audit

question 57

Multiple Choice

Risk assessment procedures are performed by auditors during an audit in order to

• A) determine the risk of material misstatement in the financial statements.
• B) determine the amount of testing of internal control.
• C) determine the extent of testing of details of balances.
• D) determine the extent of testing of transactions.

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Definitions:

Hull

An American psychologist who developed the drive-reduction theory, emphasizing the role of biological needs in motivation and behavior.

Stimulus-Response

The basic concept that a specific stimulus will elicit a specific, predictable response in an organism.

Associative

Relating to or involving connections between ideas, feelings, memories, or experiences.

Motivate Behavior

The process of encouraging or driving an individual to perform actions or engage in activities.