As Part of Her Yearly Audit Plan Activities, Krystyne Sliz

question 48

Multiple Choice

As part of her yearly audit plan activities, Krystyne Sliz reviews audit working papers of previous years to determine the risk that a client's system of internal controls will not prevent or
Detect a material misstatement. This review refers to

• A) audit risk.
• B) inherent risk.
• C) control risk.
• D) detection risk.

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Definitions:

Field Independence

A cognitive style in which individuals can easily separate details from the surrounding context, often performing well in tasks requiring finding a figure embedded in a background.

Number Facility

The ability to easily understand numbers and mathematical concepts, including performing mathematical operations.

Arithmetic Operations

Basic mathematical procedures including addition, subtraction, multiplication, and division, fundamental for quantitative reasoning.

Syllogistic Reasoning

Reasoning with problems concerning relationships among categories (e.g., “All A are B; some B are C; therefore, some A are C”).