If the Auditor's Assessment of Audit Risk Is Low (E

question 8

Multiple Choice

If the auditor's assessment of audit risk is low (e.g. ,1% rather than 5%) ,what is the effect on the amount of substantive testing performed by the auditor?

• A)Increase in substantive testing.
• B)Decrease in substantive testing
• C)No change in substantive testing.
• D)Substantive testing is not needed.

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Definitions:

Eastern Europe

A region that encompasses many countries in Europe, often including those that were part of the Soviet Bloc, characterized by diverse cultures, languages, and histories.

Coronary Heart Disease

A condition characterized by the narrowing of the coronary arteries, leading to a reduced blood supply to the heart muscle and potential heart attacks.

Less-Developed Nations

Countries characterized by low levels of industrialization, infrastructure, and income.

HIV Infection

A condition caused by the human immunodeficiency virus, which attacks the immune system and can lead to acquired immunodeficiency syndrome (AIDS) if not treated.