An Auditor Knows That an Audit Client Operating in an Industry

question 17

Multiple Choice

An auditor knows that an audit client operating in an industry in which common stock is valued based on the price-earnings ratio will soon make an initial public offering.All of the following are true except:

• A) Materiality should be reduced.
• B) Risk of material misstatement should increase.
• C) Detection risk should decrease.
• D) Audit risk should increase.

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Definitions:

Report Design View

A mode in database applications where users can create and customize the layout and contents of reports.

Field Lists

Collections of fields displayed in software applications or databases that indicate the types of information that can be entered or manipulated.

Query Design View

A visual interface in database systems that allows users to create or modify queries through a graphical representation of tables and the relationships between them.

Form Design View

A feature in database and application software that allows users to visually create and customize the layout of a form.