The Higher the Risk of Material Misstatement,the More Likely the Auditor

question 108

Multiple Choice

The higher the risk of material misstatement,the more likely the auditor is to

• A)gather more relevant and reliable evidence of fraud
• B)perform substantive tests at an interim time period
• C)increase the extent of substantive testing
• D)keep the risk of misstatement to an acceptable low level

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Definitions:

Procedural Memory

A type of long-term memory involved in the unconscious memory of skills and how to perform certain tasks.

Skiing

A winter sport involving the movement over snow with the help of skis attached to each foot.

Explicit

Clearly and directly expressed or demonstrated, leaving no room for confusion or ambiguity.

Procedural Memory

The aspect of long-term memory that enables people to perform tasks without conscious awareness of having learned them, such as riding a bike.