Audit Risk in the Audit Risk Model Concerns the Risk

question 82

Multiple Choice

Audit risk in the audit risk model concerns the risk that the auditor may issue an unqualified opinion on financial statements that are materially misstated.What is the manner in which the auditor assesses audit risk in using the audit risk model to determine the nature,extent and timing of audit evidence to collect in an audit.

• A)assessed to maintain low level of audit risk given residual risk
• B)assessed to maintain low level of audit risk given financial statement risk
• C)assessed to maintain a low level of audit risk given engagement risk
• D)assessed to maintain a low level of audit risk given enterprise risk

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Definitions:

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring, a key mechanism in evolution.

Reproduce

The biological process by which organisms produce offspring, either sexually or asexually, ensuring the continuation of their species.

Physically Fit

A state or condition of health and physical well-being, characterized by the ability to perform aspects of sports, occupations, and daily activities without undue fatigue.

Nature Versus Nurture

A debate in psychology and sociology regarding the relative importance of genetic qualities (nature) and personal experiences (nurture) in determining or causing individual differences in physical and behavioral traits.