The Risk That an Auditor's Procedures Will Lead to the Conclusion

question 16

Multiple Choice

The risk that an auditor's procedures will lead to the conclusion that a material misstatement does not exist in an account balance when,in fact,such misstatement actually does exist is ________.

• A)audit risk
• B)inherent risk
• C)control risk
• D)detection risk

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Definitions:

Total Utility

The complete satisfaction obtained from consuming a certain quantity of goods or services.

Marginal Utility

The additional satisfaction or benefit (utility) a consumer gains from consuming one more unit of a good or service.

Supply and Demand

The fundamental economic model describing the balance between the quantity of goods available and the desire of buyers for it.

Marginal Utility

The additional satisfaction a consumer gains from consuming one more unit of a good or service.