On the Basis of Audit Evidence Gathered and Evaluated,an Auditor

question 21

Multiple Choice

On the basis of audit evidence gathered and evaluated,an auditor decides to increase the assessed level of control risk from that originally planned.To achieve an overall audit risk level that is substantially the same as the planned audit risk level,the auditor would ________.

• A)decrease inherent risk to offset the increased control risk level
• B)decrease detection risk and increase planned substantive audit procedures
• C)increase inherent risk and decrease planned substantive audit procedures
• D)increase materiality levels

Analyze data to test differences among rates or proportions from different populations or groups.

Comprehend the use and interpretation of contingency tables in statistical analysis.

Identify the relationship between z-tests and chi-square tests for binomial proportion comparisons.

Understand the scope of chi-square technique applications, including tests of independence, homogeneity, and goodness-of-fit.

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Definitions:

Adjustment Problems

Difficulties in coping with or adapting to new environments, situations, or changes, often resulting in stress or dysfunction.

Organizational Development

A planned effort to increase an organization's effectiveness and health through interventions in its processes, operations, and culture.

Team Building

The process of creating and encouraging a group of employees to work together toward achieving group goals and increased productivity.

Sensitivity Training

A form of training designed to help individuals understand and improve their interpersonal relationships through the development of empathy and awareness of others' feelings.