Which of the Following Elements Ultimately Determines the Amount of Audit

question 29

Multiple Choice

Which of the following elements ultimately determines the amount of audit work that is necessary in the circumstances to afford a reasonable basis for an opinion?

• A)Auditor judgment.
• B)Materiality.
• C)Relative risk.
• D)Reasonable assurance.

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Definitions:

Company Books Adjustment

The process of making corrections or changes to the financial records of a business to reflect accurate financial positions.

Internal Control

A method deployed by a business to maintain the accuracy of finance and accounting data, achieve operational and profitability goals, and disseminate management strategies across the company.

Information And Communication

Systems and processes used to collect, process, store, and distribute information for facilitating decision making and control in an organization.

Business Goals

Objectives or targets that a company aims to achieve, which can be short-term or long-term, and are part of strategic planning.