As the Acceptable Level of Detection Risk Increases,an Auditor May

question 78

Multiple Choice

As the acceptable level of detection risk increases,an auditor may change the

• A) Assessed level of control risk from below the maximum to the maximum level.
• B) Assurance provided by tests of controls by using a larger sample size than planned.
• C) Timing of substantive procedures from year-end to an interim date.
• D) Nature of substantive procedures from less effective to more effective procedures.

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Definitions:

Adequate Communication

Effective exchange of information, ensuring all involved parties fully understand terms, expectations, or instructions.

Reserve

Funds or resources set aside for specific future use or to cover unexpected liabilities, or the practice of conserving natural resources.

Auction

An auction is a public sale where goods or services are sold to the highest bidder.

Under Seal

A formal legal expression indicating that a document's signature has been affixed in a formal manner, typically making the document legally binding and more difficult to revoke.