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:

Revolving Door

A term describing the movement of personnel between roles as legislators and regulators and the industries affected by the legislation and regulation, often highlighting potential conflicts of interest.

Rolodex Syndrome

The phenomenon of using one's network of contacts superficially, similar to flipping through a Rolodex, without fostering deep or meaningful relationships.

Horse Race Journalism

A style of news reporting that focuses more on political polls and the differences between candidates, often at the expense of deeper policy coverage.

Newspapers

Printed or digital publications consisting of sheets of newsprint, providing news, information, analysis, and opinion on current affairs, politics, economy, and culture.