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:

Custom Formatting

Custom formatting refers to the process of applying specific formatting options to data in applications like Excel, allowing for personalized presentation styles.

Format Designer

A tool or feature allowing users to customize the layout and visual aspects of documents, reports, or data presentations.

Gradient Fill

A graphical effect consisting of a smooth transition from one color to another across a surface or figure.

Color Shade

A variation in a color, determined by adding black to the color to make it darker.