An Auditor Must Be Willing to Accept Some Degree of Risk

question 56

Multiple Choice

An auditor must be willing to accept some degree of risk that the audit conclusion is incorrect.Accordingly,the auditor's objective is to seek ________ that no material error exists in the information audited.

• A) absolute reliability
• B) reasonable evidence
• C) reasonable assurance
• D) reasonable objectivity

---

Definitions:

Wrongful Dismissal

Termination of employment that breaches the terms of the contract or employment law, resulting in legal liability.

Severance Pay

Payment given to an employee when they are terminated, typically based on how long they have worked for the company.

Discretionary Bonuses

Bonus payments made at the discretion of employers, typically not guaranteed and based on performance, profitability, or other criteria.

Low-Level Radiation

Radiation of lower intensity that does not produce immediate harm to living organisms but may have long-term health effects.