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

---

Definitions:

Preconventional Level

A stage in Kohlberg's theory of moral development where moral reasoning is based on external rewards and punishments.

Moral Development

The process through which individuals acquire values, behaviors, and thoughts about what is right and wrong, evolving through various stages throughout life.

Good Or Bad

General evaluative categories assessing the moral, ethical, practical, or aesthetic quality or value of something.

Grey Matter

The region of the brain and spinal cord that is rich in neurons and neural connections, critical for processing and cognition.