Which of the Following Statements Regarding Audit Risk (AudR)and Accounting

question 37

Multiple Choice

Which of the following statements regarding audit risk (AudR) and accounting risk (AccR) is FALSE?

• A)AccR is largely geared to reflect business risks of the auditee.
• B)AccR is the material difference between an estimate involving future events and its outcome.
• C)AudR is something that is relevant to the auditee but not to the auditor.
• D)The auditor has to consider both AudR and AccR and somehow combine them using professional judgment.

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Definitions:

Plunging Anticline

A geological feature where a folded rock formation dips into the Earth at one end, creating a structure that resembles a nosedive.

Horizontal Syncline

A geological fold characterized by younger layers of rock closer to the center of the structure, with the layers dipping towards the center from both sides horizontally.

Thrust Fault

A type of reverse fault characterized by a shallowly dipping fault plane where rock layers are pushed upwards.

Monocline

A geological fold where all strata are inclined in the same direction, forming a step-like structure.