Which Is a Primary Limitation of the Audit Risk Model

question 24

Multiple Choice

Which is a primary limitation of the audit risk model?

• A)The audit risk model does not adequately consider external forces on the client organization.
• B)Components of audit risk are treated as independent variables even though many interdependencies exist between them.
• C)The audit technology achieves approximate precision outside of a mathematical model.
• D)Control risk must be adjusted at the hands of the auditor,not by an arbitrary estimation.

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Definitions:

Organic Product

A compound containing carbon that has been formed as the result of a chemical reaction involving organic molecules.

Reaction

A method where substances combine and transform into one or more distinct substances possessing unique chemical and physical characteristics.

Organic Product

A natural substance or compound obtained through biochemical processes from organisms or their parts.

Reaction

A process in which substances interact to form new substances with different properties, involving a reorganization of atoms or molecules.