The Achieved (Actual)level of Audit Risk

question 33

Multiple Choice

The achieved (actual) level of audit risk

• A) Can always be accurately assessed by the auditor.
• B) Should be greater than or equal to acceptable audit risk.
• C) Can never be known with certainty.
• D) Is the same for all audit clients.

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Definitions:

Term To Maturity

The remaining time until a debt security is due to be repaid, at which point the principal (or face value) is paid to the bondholders.

Annual Coupon

The annual payment of interest to bondholders, usually shown as a percent of the bond’s nominal value.

Yield To Maturity

The total return anticipated on a bond if held until it matures, accounting for its current market price, interest payments, and eventual repayment of principal.

Required Rate Of Return

The minimum acceptable rate of return considering both its risk and the returns available on other investments.