If Inherent Risk Increases and All Other Risks in the Audit

question 44

Multiple Choice

If inherent risk increases and all other risks in the audit risk model stay constant (except the one referred to below) ,which of the following is correct?

• A)Detection risk must increase.
• B)Control risk will increase.
• C)Audit risk will decrease.
• D)Detection risk must decrease.

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Definitions:

Consideration

An element of a contract involving something of value exchanged between parties, which can include money, services, or promises, necessary for a valid contract.

E-mail

A method of exchanging messages between people using electronic devices, widely used for both personal and professional communication.

Promise

A declaration or assurance that one will do a particular thing or ensure that a particular thing happens.

Cause of Action

The legal ground or claim allowing a plaintiff to pursue legal action against a defendant in court.