Which of the Following Statements Concerning the Audit Risk Model

question 15

Multiple Choice

Which of the following statements concerning the audit risk model is false?

• A)It is used to determine the planned level of substantive audit testing to be performed in the audit.
• B)It is useful as a planning tool at the beginning of the audit.
• C)It is applied at both the financial statement and individual account and financial statement assertion levels.
• D)It allows the auditor to accurately quantify the level of audit risk.

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Definitions:

Eroded Rocks

Rocks that have been worn down or broken apart by the forces of weathering and erosion.

Cleavage

The tendency of a mineral to break along smooth flat surfaces according to its crystal structure.

Luster

The way a mineral reflects light from its surface, which can be metallic, glassy, dull, etc., and is used in mineral identification.

Color

The characteristic of visual perception described through hue, saturation, and brightness.