The Relationship Between Risk and the Extent of Testing Is

question 103

Multiple Choice

The relationship between risk and the extent of testing is

• A)As the risk of material misstatement increases,the auditor increases the extent of an audit procedure
• B)As the risk of material misstatement decreases,the auditor decreases the extent of substantive audit procedures and increases internal control testing
• C)As the risk of material misstatement increases,the auditor decreases internal control testing and increases the extent of substantive audit procedures
• D)The auditor may use computer-assisted audit techniques to test an entire population rather than take a sample as the risk of material misstatement increases
• E)The auditor is required to use computer-assisted audit techniques to test an entire population rather than take a sample as the risk of material misstatement increases
• F)both A and B
• G)both A and D

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Definitions:

Unsaturated

A term describing molecules, particularly fats or fatty acids, which contain one or more double bonds between carbon atoms, making them less hydrogenated.

Vegetable Oils

Edible oils extracted from plants' seeds, fruits, or other parts, widely used in cooking and food preparation.

Hydrolysis

A chemical reaction involving the breakdown of a compound by water, leading to the separation of molecules.

Requires Water

Pertains to processes, organisms, or reactions that need water to function or occur.