Which of the Following Statements Is Correct

question 8

Multiple Choice

Which of the following statements is correct?

• A) If detection risk is high, significant substantive procedures are necessary to reduce detection risk.
• B) There is an inverse relation between the auditor's assessed risk of material misstatement and detection risk.
• C) There is no relation between the auditor's assessed risk of material misstatement and detection risk.
• D) If detection risk is low, only a small number of substantive procedures are necessary to reduce the detection risk.

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Definitions:

Repetitive

Involving or characterized by repetition, often to the point of being monotonous or predictable.

Disaster

A sudden event, such as a natural catastrophe or human-made crisis, that causes great damage or loss of life.

Obsessive-compulsive Disorder

A mental disorder characterized by repetitive, unwanted thoughts (obsessions) and irrational, excessive urges to do certain actions (compulsions).

Ritual

A set of fixed actions and sometimes words performed regularly, especially as part of a ceremony or for religious purposes.