Planning an Audit of a Financial Report Requires That an Auditor

question 22

Multiple Choice

Planning an audit of a financial report requires that an auditor plan their audit to reduce audit risk to an acceptable low level.Audit risk can be defined as;

• A)The risk that the auditor expresses and inappropriate opinion at the conclusion of the audit.
• B)The risk that the auditor does identify the material misstatements.
• C)That sufficient appropriate evidence cannot be gathered to form an opinion of the truthfulness of the financial statements.
• D)That fraud exists in the accounts and the client is aware that the fraud exists.

---

Definitions:

Urban Populations

The demographic segment of people living in cities and towns, as opposed to rural areas, often associated with higher density of human structures and infrastructure.

Differentiation

In the theory of human ecology refers to the process by which urban populations and their activities become more complex and heterogeneous over time.

Demographic Research

The study of human populations, including their size, growth, density, distribution, and statistics regarding birth, marriage, disease, and death.

Population Growth

The increase in the number of individuals in a population, often discussed in the context of its effects on society and the environment.