An Auditor Assesses Management's Ability to Identify and Respond to Its

question 12

Multiple Choice

An auditor assesses management's ability to identify and respond to its business risks because:

• A)It reduces the auditor's risk of accepting the audit engagement
• B)It reduces the amount of planned audit evidence.
• C)It reduces the risk of material misstatement at the financial statement level.
• D)It reduces the preliminary assessment of materiality.

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Definitions:

Ethical Standards

Principles that guide behavior in business and professional settings, ensuring actions are morally right and beneficial.

Public Opinion Polls

Surveys or inquiries designed to measure the public's views on various topics, issues, or candidates.

Moral Principles

Fundamental beliefs about right and wrong that guide individuals' behaviors and decision-making in personal and professional contexts.

Enforceable

Capable of being implemented or upheld by legal means.