If Inherent Risk Is High and No Assurance Has Been

question 40

Multiple Choice

If inherent risk is high and no assurance has been obtained from controls testing:

• A)extensive substantive procedures need to be performed to estimate the dollar value of any error in the account balance.
• B)only overall analytical review procedures need to be performed to reduce detection risk to an acceptable level.
• C)no further substantive testing needs to be performed.
• D)None of the above.

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Definitions:

Introspection

Reviewing or scrutinizing one's own psychological and emotional states.

Wundt

Wilhelm Wundt, often considered the father of experimental psychology, known for founding the first psychology laboratory.

Titchener

A psychologist known for founding structuralism and advocating the method of introspection to identify the basic elements of consciousness.

Cognitive Processes

Mental activities involved in acquiring, storing, retrieving, and using knowledge, including perception, memory, reasoning, and language.