Which of the Following Statements Is Not True

question 93

Multiple Choice

Which of the following statements is not true?

• A) Inherent risk is inversely related to the amount of audit evidence whereas detection risk is directly related to the amount of audit evidence required.
• B) Inherent risk is directly related to evidence whereas detection risk is inversely related to the amount of audit evidence required.
• C) Inherent risk is the susceptibility of the financial statements to material error, assuming no internal controls.
• D) Inherent risk and control risk are assessed by the auditor and function independently of the financial statement audit.

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Definitions:

Threshold Point

The critical juncture in a process or system at which a significant effect or change occurs; often used in decision-making or in understanding when a situation becomes critical.

Complex Interactions

Situations where multiple variables and factors interact in intricate ways, leading to unpredictable outcomes.

Team Size

The number of members within a team, impacting the team's dynamics, performance, and communication.

Effective Group Process

Effective group process involves strategies and behaviors that enable a team to operate efficiently, make decisions collaboratively, and achieve its objectives harmoniously.