In Determining Audit Risk,the Auditor Decides How Much Risk Will

question 64

Multiple Choice

In determining audit risk,the auditor decides how much risk will be taken on by the firm.Which of the following is correct regarding this decision by the auditor?

• A)The auditor may decide to intentionally render an inappropriate opinion.
• B)The auditor may decide not to take the audit engagement.
• C)The auditor may decide to accept audit risk at 100%.
• D)The auditor may decide that engagement risk is an appropriate measure of audit risk.

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Definitions:

Flextime

A flexible work schedule arrangement that allows employees to alter their start and end times, typically to accommodate personal needs and improve work-life balance.

Specified Limits

Predetermined boundaries or parameters that define acceptable levels of variation for process outputs, quality standards, or other measurable factors.

Self-actualization

The attainment or realization of personal skills and potential, regarded as a basic impulse or demand in everyone.

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology about human motivational factors.