Which of the Following Audit Risk Components May Be Assessed

question 27

Multiple Choice

Which of the following audit risk components may be assessed in qualitative terms?

• A)Risk of material misstatement.
• B)Detection risk.
• C)Neither risk of material misstatement nor detection risk.
• D)Both risk of material misstatement and detection risk.

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Definitions:

Hidden Objection

A hidden objection is a reservation or concern held by a potential customer that is not openly expressed, often becoming a barrier to closing a sale.

True Objection

A genuine concern or question raised by a customer that needs to be addressed satisfactorily during a sales process.

Psychological Objection

A mental barrier or resistance rooted in personal beliefs or fears, affecting one's decision-making process.

Resistance To Spending

The hesitation or unwillingness of consumers or organizations to use funds for purchasing products or services.