If an Auditor Concludes That Internal Controls Are Likely to Be

question 72

Multiple Choice

If an auditor concludes that internal controls are likely to be effective, the preliminary assessment of control risk can be reduced, leading to which of the following impacts on the acceptable risk of incorrect acceptance?

• A) The acceptable risk of incorrect acceptance will be reduced.
• B) The acceptable risk of incorrect acceptance will be increased.
• C) The acceptable risk of incorrect acceptance will be eliminated.
• D) The acceptable risk of incorrect acceptance will not be impacted.

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Definitions:

Working Memory Capacity

Refers to the amount of information that can be held in working memory at one time, which plays a critical role in reasoning, decision-making, and behavior.

Reading Comprehension

The ability to understand, engage with, interpret, and draw conclusions from written texts.

Working Memory

A cognitive system responsible for temporarily holding information available for processing and manipulation.

Short-term Memory

Refers to the capacity for holding a small amount of information in an active, readily available state for a brief period of time.