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:

MRC

Marginal Resource Cost, the additional cost incurred by acquiring one more unit of a resource.

Complementary Resources

Different types of goods or services that, when used together, enhance each other's value and performance.

Market Value

The ongoing rate at which a commodity or service can be traded in the public market.

Productivity

The measurement of efficiency in which goods and services are produced, often assessed by the amount of output per unit of input.