When Deciding on the Acceptable Risk of Assessing Control Risk

question 115

Multiple Choice

When deciding on the acceptable risk of assessing control risk too low, the auditor needs to:

• A) rely on his/her professional judgment.
• B) err on the side of conservatism.
• C) consult the professional standards.
• D) follow SEC guidelines.

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Definitions:

Cultural Relativism

People look to societal norms for what is morally right and wrong.

Moral Theory

A systematic framework for understanding, analyzing, and distinguishing right from wrong behavior.

Moral Dilemma

A situation in which there is a conflict between moral values.

Moral Values

Values that benefit oneself and others and are worthwhile for their own sake.