The Risk of Material Misstatement Differs from Detection Risk in That

question 46

Multiple Choice

The risk of material misstatement differs from detection risk in that it

• A) Arises from the misapplication of auditing procedures.
• B) May be assessed in either quantitative or qualitative terms.
• C) Exists independently of the actions of the auditor.
• D) Can be changed at the auditor's discretion.

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Definitions:

Knowledge And Skills

The theoretical understanding and practical abilities acquired through education, training, and experience.

Job Characteristics Model

A theory that proposes that the nature of a job itself affects employee motivation, satisfaction, and performance, based on five core dimensions: skill variety, task identity, task significance, autonomy, and feedback.

Competent

Possessing the necessary skills, knowledge, and ability to perform a specific task or job effectively.

Confident

The state of feeling certain about the truth of something or having a firm belief in one's abilities, quality, and judgment.