To Ensure That a High Level of Assurance Is Provided

question 20

Multiple Choice

To ensure that a high level of assurance is provided by the audit opinion,what must the auditor do?

• A)Plan and execute the audit to ensure an acceptably low risk of material misstatement is achieved.
• B)Plan and execute the audit to ensure an acceptably low level of audit risk is achieved.
• C)Plan and execute the audit to ensure an acceptably low level of inherent risk is achieved.
• D)Plan and execute the audit to ensure an acceptably low level of detection risk is achieved.

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Definitions:

Credit Reports

Documents compiled by credit bureaus detailing an individual's credit history, including loans, repayments, late payments, and bankruptcy records, used by lenders to assess creditworthiness.

Natural Person

A living human individual recognized by law as having rights and obligations, as opposed to a legal entity like a corporation.

Limited Partnerships

A form of partnership consisting of one or more general partners, who manage the business and are personally liable for its debts, and one or more limited partners, who contribute capital and share profits but take no part in running the business and incur no liability beyond their investment.

Good-faith Effort

An honest attempt or endeavor made in a sincere and honest effort, without intent to defraud or seek unfair advantage.