Which of the Following Statements Is Correct About Audit Risk

question 4

Multiple Choice

Which of the following statements is correct about audit risk?

• A) It is impossible to completely eliminate audit risk.
• B) Audit risk is the risk that an auditor expresses an inappropriate opinion when thefinancial statements are materially stated.
• C) Audit risk can be reduced at the planning stage of an audit by identifying the key risks faced by the client.
• D) All of the above.

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Definitions:

Dweck's Motivational Theory

Carol Dweck's theory proposing that individuals possess fixed or growth mindsets that significantly influence their learning, effort, and resilience in the face of challenges.

Implicit Theories

Beliefs or assumptions that individuals hold about how certain traits or abilities can change over time; these often guide behavior and interpretations of oneself and others.

Achievement Domains

Relate to specific areas or fields where an individual can accomplish, succeed, or excel, such as academics, sports, or the arts.

S-R Association Theory

A psychological theory suggesting that behavior is a result of the association between stimuli (S) and responses (R) learned through conditioning.