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.

---

Definitions:

Combustion

A chemical reaction that occurs between a fuel and an oxidant, producing heat and often light; commonly known as burning.

Rusting

The chemical process involving the oxidation of iron or steel, resulting in the formation of iron oxides, particularly Fe2O3 and Fe3O4.

Redox Reactions

Chemical reactions where electrons are transferred between two substances, involving oxidation and reduction processes.

Neutralization Reactions

Chemical reactions in which an acid and a base react quantitatively to form water and a salt.