Under GAAS,which of the Following Is an Appropriate Justification for Accepting

question 48

Multiple Choice

Under GAAS,which of the following is an appropriate justification for accepting to perform an audit when the risk to the auditor from accepting the engagement is high?

• A)The auditor believes that the audit risk can be reduced to a very low level by performing extensive audit work.
• B)The auditor believes the risk of material misstatement remains low.
• C)The auditor has assessed control risk as low.
• D)The auditor believes the high audit fee outweighs the risk of legal liability from association with the financial statements

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Definitions:

Specialty Store

A store that concentrates on selling one line of goods or services and carries a narrow but deep merchandise assortment.

Geofencing

The use of GPS or RFID technology to create a virtual geographic boundary, triggering a response when a mobile device enters or leaves a particular area.

Experiential Retail

A retail strategy that focuses on creating immersive shopping experiences that engage customers beyond traditional transactions.

Fan Apparel

Clothing and merchandise designed to show support for sports teams, players, or entertainment franchises, often featuring logos and themes.