As the Acceptable Level of Detection Risk Decreases, an Auditor

question 64

Multiple Choice

As the acceptable level of detection risk decreases, an auditor may change the:

• A)timing of substantive tests by performing them at an interim date rather than at balance date.
• B)assessed level of inherent risk to a higher amount.
• C)timing of tests of controls by performing them at several dates rather than at one time.
• D)nature of substantive tests from a less effective to a more effective procedure.

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Definitions:

Responsiveness

The speed and quality of a reaction to inquiries, requests, or changing conditions, often used as a measure of good customer service or system performance.

Service Quality

A measure of how well the service level delivered matches customer expectations.

Gap Analysis

The process of comparing actual performance with potential or desired performance to identify differences, shortcomings, or opportunities for improvement.

Service Evaluation

The process of assessing the quality, efficiency, and satisfaction associated with a service provided, based on specific criteria and feedback.