The Risk Based Approach to Auditing Is Dependent Upon the Auditor's

question 68

Multiple Choice

The risk based approach to auditing is dependent upon the auditor's ability to understand the business sufficient to identify and adjust to the residual risk left in account balances.What is the effect upon the nature,extent and timing of audit evidence if the auditor assessment of internal controls of the client indicates that a higher degree of residual risk remains in account balances?

• A)Gather less persuasive evidence.
• B)Smaller sample sizes.
• C)Gather more data at or after year end.
• D)All of these effects on the nature,extent and timing of audit evidence are applicable.

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Definitions:

Mary Ainsworth

A developmental psychologist known for her work on attachment theory, especially the Strange Situation procedure to observe attachment relationships between a caregiver and child.

Avoidant Attachment

A type of attachment style characterized by emotional distancing, independence, and reluctance to seek or accept comfort from others.

Secure Attachment

A type of emotional bond between a child and their caregiver characterized by the child's confidence in the caregiver's availability and responsiveness to their needs, leading to a sense of safety and security.

Definition of Temperament

An individual's innate predisposition towards emotional reactivity and intensity of response to the environment.