Which of the Following Actions Cannot Be Taken by Auditors

question 15

Multiple Choice

Which of the following actions cannot be taken by auditors to reduce audit risk?

• A)Increase the amount of substantive testing of account balances at year-end.
• B)Reduce the level of inherent risk.
• C)Increase the use of analytical procedures.
• D)Reduce the level of detection risk.

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Definitions:

Net Working Capital

Net working capital is the difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the company.

Net Fixed Assets

The value of all fixed assets in a company, such as property, plant, and equipment, after accounting for depreciation and amortization.

Cash Flow From Assets

Is the total amount of money being transferred into and out of a business, specifically from its operational, investment, and financial activities.

Operating Cash Flow

The amount of cash generated by a company’s normal business operations.