The Auditor Uses the Assessed Level of Risk of Material

question 8

Multiple Choice

The auditor uses the assessed level of risk of material misstatement to determine the acceptable level of detection risk for financial statement assertions.As the acceptable level of detection risk decreases,the auditor may do one or more of the following except change the

• A) Nature of substantive tests to more effective procedures.
• B) Timing of substantive tests, such as performing them at year-end rather than at an interim date.
• C) Extent of substantive tests, such as using larger sample sizes.
• D) Assurances provided by substantive tests to a lower level.

---

Definitions:

Reasoning

The process of thinking about something in a logical, sensible way to form conclusions, inferences, or judgments.

Remembering

The cognitive process of recalling information or experiences stored in one's memory.

Mental Representation

A cognitive structure in the mind that represents objects, events, or concepts, serving as a mental model of the world.

Proposition

A declaration or claim that reflects a belief or viewpoint.