An Appropriate Mix of Evidence for a Low-Risk Client Could

question 16

True/False

An appropriate mix of evidence for a low-risk client could include 20% tests of details,40% analytics,and 40% tests of controls;an appropriate mix of evidence for a high-risk client could include 60% tests of details,20% analytics,and 20% tests of controls.

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Definitions:

Units

Basic quantities or measurements, such as pieces or liters, used to quantify the amount of a product or substance.

Marginal Revenue Product

The additional revenue generated by employing one more unit of input, such as labor, in the production process.

Resource

An input used in the production of goods or services, such as labor, land, capital, and technology.

Units

A standard quantity or measurement used to express the quantity of a product or dimension of a measure.