A High Detection Risk Strategy Includes All of the Following

question 96

Multiple Choice

A high detection risk strategy includes all of the following except:

• A) Interim testing.
• B) Reduced testing of transactions.
• C) Heavy reliance on analytical procedures as substantive procedures.
• D) Audit work only completed at year-end.

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Definitions:

Tax Revenue

Income earned by the government from taxing individuals and businesses.

Tax

An obligatory fiscal charge or another form of assessment applied to a taxpayer by a government body to finance government operations and diverse public expenses.

Deadweight Loss

Deadweight loss is an economic inefficiency that arises when a market outcome is not optimal, resulting in a loss of total surplus due to factors like taxes or monopolies.

Supply

The total amount of a product or service that is available for purchase at any given time.