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

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Definitions:

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at each price point.

Supply Schedule

A table that shows the relationship between the price of a good and the quantity of that good a supplier is willing to offer for sale at each price level.

Equilibrium Price

The market price at which the quantity of goods demanded equals the quantity supplied, bringing the market into balance.

Market

A system or place where buyers and sellers interact to trade goods, services, or assets.