The Auditor May Properly Address the Risk Associated with an Organization

question 64

Multiple Choice

The auditor may properly address the risk associated with an organization that does not demonstrate a commitment to good governance in the all of the following ways except:

• A)not accepting the client
• B)performing more audit work to better manage the financial risk to the auditor
• C)charging a higher audit fee without performing increased audit work to compensate the auditor for the risk
• D)all of the above are proper are proper

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Definitions:

Installment Note

A loan that requires regular payments, or installments, of principal and interest over a set period, often used for buying large, expensive items.

Journal Entry

A record in accounting that represents a transaction or financial event affecting the entity's financial statements, involving at least one debit and one credit.

Annual Year-End

The conclusion of a 12-month financial year period on which a company's annual financial statements are based.

Installment Note

A loan or credit agreement that requires a fixed number of payments over a specified period of time.