The Risk of Material Misstatement Differs from Detection Risk in That

question 46

Multiple Choice

The risk of material misstatement differs from detection risk in that it

• A) Arises from the misapplication of auditing procedures.
• B) May be assessed in either quantitative or qualitative terms.
• C) Exists independently of the actions of the auditor.
• D) Can be changed at the auditor's discretion.

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Definitions:

Resistance

Involves the act of opposing or standing against changes, proposals, or efforts, often due to discomfort, fear, or dissatisfaction with new ideas.

Compliance

Following rules, standards, or laws, or the act of adhering to requests or demands from others.

Adherence

The extent to which individuals follow the rules, guidelines, or treatment plans prescribed by authorities or experts, often used in contexts like healthcare, law, and organizational policies.

Commitment

The state or quality of being dedicated to a cause, activity, or goal.