The Situation and Circumstances Can Dictate the Level of Certain

question 50

Multiple Choice

The situation and circumstances can dictate the level of certain risks no matter what the auditor does.However, the auditor is always able to decide to reduce one of the following risks:

• A)Control risk.
• B)Risk of management fraud.
• C)Detection risk.
• D)Inherent risk.

---

Definitions:

Utility Function

A mathematical representation of a consumer's preference ordering over a set of goods and services.

Leather Jackets

Garments made from the skin of animals, primarily cows, processed and designed for wear primarily as outerwear.

Utility Function

A mathematical representation of a consumer's preference ranking for bundles of goods or services, used to predict economic behavior.

Curds

The solid parts of milk that coagulate when milk is soured or treated with enzymes, used in cheese-making.