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

question 31

Multiple Choice

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

• A) Timing of tests of controls by performing them at an interim date rather than at year-end.
• B) Nature of substantive procedures from less effective to more effective procedures.
• C) Timing of tests of controls by performing them at several dates rather than at one time.
• D) Assessed level of risk of material misstatement to a higher amount.

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Definitions:

Technical Matters

Issues or aspects that are concerned with the practical, mechanical, or procedural side of a subject, often requiring specialized knowledge or skills.

Staffing

The process of hiring, positioning, and overseeing employees in an organization to ensure that it is adequately staffed with qualified individuals.

Monitoring Subordinate

The act of overseeing the performance and activities of employees or team members to ensure compliance with standards and objectives.

Contingency Leadership

A leadership theory that emphasizes the importance of situational factors, such as the organizational environment and the nature of the task, in determining the most effective leadership style.