Which of the Following Is the Risk That Audit Tests

question 77

Multiple Choice

Which of the following is the risk that audit tests will not uncover existing exceptions in a sample?

• A)Sampling risk
• B)Nonsampling risk
• C)Audit risk
• D)Detection risk

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Definitions:

Costly Litigation

The process of engaging in legal action that incurs high expenses, often impacting an organization's financial resources.

Implemented Decision

A decision that has been put into action within an organization or strategy.

Cost-Benefit Analysis

Cost-benefit analysis is a financial decision-making process in which the costs of taking an action are compared to the benefits that action will provide.

Expected Benefits

Anticipated advantages or improvements resulting from a particular action, investment, or decision.