Which of the Following Is not an Example of a Likely

question 8

Multiple Choice

Which of the following is not an example of a likely adjustment in the auditors' overall audit approach when significant risk is found to exist?

• A)Apply increased professional skepticism about material transactions.
• B)Increase the assessed level of detection risk.
• C)Assign personnel with particular skill to areas of high risk.
• D)Obtain increased evidence about the appropriateness of management's selection of accounting principles.

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Definitions:

Third Party

An individual or group besides the two primarily involved in a transaction or legal situation, often providing additional services or involvement.

Agent

A person or entity authorized to act on behalf of another person or entity, known as the principal, in business transactions or legal matters.

Agreement

One of the four elements necessary for a contract; consists of an offer made by one party, the offeror, and the acceptance of the offer by another party, the offeree.

Principal

A principal can refer to the main party in a transaction or agreement, often used to denote the primary source of obligation or responsibility.