Based on the Results of Attributes Sampling,the Audit Team Assessed

question 22

Multiple Choice

Based on the results of attributes sampling,the audit team assessed control risk too low and did not modify the nature,timing,and extent of its further audit procedures to reduce detection risk.This situation would most likely result in a(n) :

• A)Higher level of audit risk than planned.
• B)Lower level of inherent risk.
• C)Greater efficiency loss.
• D)Lower effectiveness loss.

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Definitions:

Net Present Value

A method to evaluate investments by calculating the difference between the present value of cash inflows and outflows over a period.

Synergy Value

The additional value created from combining two or more entities, where the whole is greater than the sum of its parts.

Equity-Financed

Pertaining to a business or project that is funded through the sale of equity or shares rather than debt.

Price Per Share

The current market price of a share of stock in a company.