Which of the Following Is the Most Likely Outcome When

question 101

Multiple Choice

Which of the following is the most likely outcome when the upper limit rate of deviation is less than the tolerable rate of deviation?

• A)The auditor would be exposed to the risk of overreliance.
• B)The auditor would decide to reduce the planned degree of reliance on internal control.
• C)The auditor would increase the extent of further audit procedures.
• D)The auditor would be exposed to a potential efficiency loss.

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Definitions:

Memorandum of Law

A detailed written statement prepared by legal counsel, arguing a specific legal issue or point, often submitted in support of motions or during trial preparations.

Brief

A written document submitted by counsel arguing a case, outlining the facts, legal issues, and arguments for consideration by the court.

Affirmative Defense

A defense in which the defendant introduces evidence, which, if found to be credible, will negate criminal or civil liability, even if the allegation is true.

Responsive Pleading

A legal document filed in response to an initial complaint, addressing and contesting the points raised.