An Audit Should Be Planned So That the Greatest Amount

question 1

Multiple Choice

An audit should be planned so that the greatest amount of audit work focuses on the areas with the highest risk factors.Regarding risk factors,control risk is defined as

• A)the susceptibility to material risk in the absence of controls.
• B)the risk that a material misstatement will get through the internal control structure and into the financial statements.
• C)the risk that auditors and their audit procedures will not detect a material error or misstatement.
• D)the risk auditors will not be given the appropriate documents and records by management who wants to control audit activities and procedures.

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Definitions:

Rounded

The process of approximating a number to a specified degree of precision, often to the nearest whole number.

Rounding Rules

Guidelines used in mathematics and statistics for reducing the number of digits in a numeric value according to certain criteria, typically to make the value simpler or more intuitive.

Rounded

The process of adjusting numerical values to a specified degree of accuracy, typically to make them simpler or more manageable.

Rounded

A numerical value that has been adjusted to a less precise form, often to make it simpler or easier to communicate.