When There Is a Significant Risk That an Account Will

question 8

Multiple Choice

When there is a significant risk that an account will be misstated and the client's system of internal controls is not considered effective at reducing that risk,

• A) less high quality evidence is gathered when conducting substantive tests.
• B) detection risk is set as high.
• C) detection risk is set as low.
• D) none of the above

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Definitions:

Dedication

A strong commitment to a task or purpose, often demonstrated through persistent effort and focus.

Psychological Capital

An individual's positive psychological state, characterized by self-efficacy, optimism, hope, and resilience, which enhances performance and well-being.

Vigour

The physical strength, energy, and enthusiasm displayed by individuals, often associated with high levels of activity and productivity.

Dedication

A commitment to a task or purpose, characterized by a willingness to put in effort and time towards achieving specific goals.