Which of the Following Is Not True with Respect to the Concept

question 72

Multiple Choice

Which of the following is not true with respect to the concept of reasonable assurance?

• A)Reasonable assurance allows for mistakes and misinterpretations by the audit team throughout the examination.
• B)The nature of many audit procedures is such that they cannot always be relied upon to detect misstatements.
• C)Audit teams should evaluate all transactions and components of an account balance or class of transactions.
• D)Auditors should control the overall risk in an audit to an acceptably low level.

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Definitions:

Hard Power

The use of military or economic force to influence the behavior or interests of other political bodies.

Economic Force

A factor that affects the direction and magnitude of economic growth or decline, such as consumer behavior, government policy, or technological innovation.

Military Force

The armed forces of a country, used for defense or in combat situations.

Gini Index

A measure of the distribution of income across a population, used to gauge economic inequality.