Which of the Following Situations Would Provide Auditors with a Lower

question 82

Multiple Choice

Which of the following situations would provide auditors with a lower level of detection risk?

• A) Inspecting an item rather than directly confirming the existence of that item with third parties.
• B) Evaluating a smaller number of transactions or components of an account balance.
• C) Relying extensively on verbal inquiry of client personnel in gathering evidence.
• D) Examining an account that is more susceptible to misstatement because of complex calculations and accounting methods.

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Definitions:

Soviet Union

A socialist state in Eurasia that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR), which was a federal system of multiple subnational Soviet republics.

Virtually Alone

A phrase used to describe being almost or completely alone, especially in the context of facing a situation or challenge without support or assistance from others.

Neutrality Acts

Series of laws passed between 1935 and 1939 to keep the United States from becoming involved in war by prohibiting American trade and travel to warring nations.

Arms Sale

The transaction and distribution of military weapons, equipment, and technology between countries or entities.