Detection Risk Is the Risk That the Auditor Will Not

question 32

Multiple Choice

Detection risk is the risk that the auditor will not detect material misstatements in the accounts. To limit detection risk to an acceptable level, the auditor ________.

• A) performs substantive tests
• B) tests controls
• C) gains an understanding of the internal control system
• D) applies statistical methods

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Definitions:

Dendritic Spine

Small protrusions on a neuron's dendrite that typically receive synaptic input from a single synapse of an axon.

Microfilaments

Fine, thread-like protein fibers that are a major component of the cell's cytoskeleton, involved in various cellular functions including shape and movement.

Golgi Bodies

Organelles found in cells responsible for modifying, sorting, and packaging proteins and lipids into vesicles for delivery to targeted destinations.

Neurons

Unique cells within the nervous system that convey information to other neurons, muscles, or glands via electrical and chemical signals.