Which of the Following Statements Regarding Detection Risk Is True

question 3

Multiple Choice

Which of the following statements regarding detection risk is true?

• A)Detection risk incorporates both substantive analytical procedures and tests of details.
• B)Detection risk provides guidance to the auditor on the substantive audit procedures needed to achieve the desired audit risk.
• C)A low level of detection risk means the auditor needs to obtain more evidence from substantive procedures.
• D)All of the above.

Understand the legal and ethical implications of discrimination and prejudice in the workplace.

Relate diversity and discrimination concepts to real-world workplace scenarios.

Comprehend strategies to counteract prejudice and discrimination in the organizational setting.

Identify and understand different forms of discrimination and their impacts.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed costs in a company's cost structure.

Sales Increase

The rise in the volume or amount of sales over a specific period, reflecting business growth.

Net Operating Income

The profit generated from a company's core business operations after deducting all operating expenses except for interest and taxes.

Degree Of Operating Leverage

A financial metric that measures the sensitivity of a company's operating income to its sales. Higher leverage indicates that a small change in sales can lead to a large change in operating income.