Which of the Following Is the Risk That Audit Tests

question 77

Multiple Choice

Which of the following is the risk that audit tests will not uncover existing exceptions in a sample?

• A)Sampling risk
• B)Nonsampling risk
• C)Audit risk
• D)Detection risk

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Definitions:

Business Computer

A computing device specifically designed, acquired, and used to meet the operational requirements of a business.

Double-Declining-Balance

A method of accelerated depreciation that doubles the straight-line depreciation rate, expensing more of the asset's cost closer to the beginning of its useful life.

Depreciation Expense

The allocated reduction in the value of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Straight-Line Depreciation

A strategy for apportioning an asset’s price equally over the duration of its usability.