The Risk Which the Auditor Is Willing to Take in Accepting

question 80

Multiple Choice

The risk which the auditor is willing to take in accepting a control as being effective when the true population exception rate is greater than a tolerable rate is the

• A) finite correction factor.
• B) tolerable exception rate.
• C) acceptable risk of overreliance.
• D) estimated population exception rate.

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Definitions:

Hostile Witness

A witness whose testimony is not favorable to the party calling them to testify, often showing obvious bias or reluctance.

Adverse Witness

A witness whose testimony is expected to be unfavorable to the party who has called them to testify.

Initial Client Interview

The first formal meeting between a legal professional and a prospective client to discuss the client's legal issue or case.

Lay Witness

An individual giving testimony in a legal proceeding about facts or what they personally observed, as opposed to expert opinions.