Which of the following would not result in exposure to nonsampling risk?a. Measuring the characteristic of interest in an inappropriate manner.b. Selecting items that are not representative of the population of interest.c. Making an unintentional mistake in measuring the characteristic of interest.d. All of the above would result in exposure to nonsampling risk.

Q: When one party to a transaction has incentives to engage in behavior that would be harmful to the…

A: Contract theory means the measures to legally bind the contract, which shows that the different…

Q: The risk of incorrect rejection and the risk of underreliance relate to thea. Effectiveness of the…

A:

Q: Salaries of the office staff, advertising expense, and depreciation expense would be included in the…

A: Production Budget :— This budget estimates the number of units to be produced during the period.…

Q: 2. Which of the following is not true about the advantages of statistical sampling approach? * A.…

A: Correct option is B. Sample findings are evaluated in a more scientific way.   Explanation:

Q: Which of the following conditions is not necessary for a fraud to occur? Select one: a. Explanation…

A: Following conditions are necessary for a fraud to occur: 1. Pressure 2. Opportunity 3.…

Q: Which of the following does NOT accurately describe detection risk? assessed as low when control…

A: The risk that the financial statements of an entity include material misstatements is referred to as…

Q: The adverse opinion indicates that the statements are not presented fairly or are materially…

A: The work of an auditor is to issue audit report in which they provide their opinions on the…

Q: The risk that a client's financial statements are susceptible to material misstatements is a.…

A: SOLUTION- INHERENT RISK IS THE RISK POSED BY AN ERROR OR OMISSION IN A FINANCIAL STATEMENT DUE TO A…

Q: Which of the following is appropriate about risk assessment? A. The assessed level of inherent and…

A: Risks are the unfavourable situations or circumstances that can make loss for the organisation or…

Q: What are the two sampling risks associated with attributes sampling? What types of losses…

A: Sampling risk is a risk that arises when the judgments based on the sample varies from the…

Q: state the effect on planned evidence (increase or decrease) of changing each of 'AN INCREASE IN…

A: A tolerable misstatement states the amount by which a financial statement line item can differ from…

Q: Why would an auditor use observation to gather evidence? What are the strengths and weaknesses of…

A: solution : Why would an auditor use observation to gather evidence? What are the strengths and…

Q: Which of the following is not an element of the fraudtriangle?a. Opportunityb. Control environmentc.…

A: Given: To determine the following is not an element of the fraud triangle given as,a. Opportunityb.…

Q: Which of the following statements is correct regarding detection risk and the audit risk model? OA.…

A: Audit risk is a tool for auditor to evaluate various risks may arise while performing an audit.…

Q: Which of the following terms best describes the risk that audit procedures will fail to detect…

A: The Correct Option is C

Q: Which one of the sentences below is FALSE? A. The risk of incorrect acceptance called beta risk has…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: Why is the audit team more concerned with the risk of overreliance than with the risk of…

A: Auditing is a gathering of information and evaluation of evidence as to report on the degree of…

Q: Why are auditors more concerned with the risk of incorrect acceptance than the risk of incorrect…

A: Definition:

Q: The process of determining which risks to insure and which applicants to reject is known as

A: Given information The process of determining which risks to insure and which applicants to reject…

Q: 3.) Which of the following is considered emotional biases?    A. Loss aversion, overconfidence,…

A: Emotional biases are biases in decision-making that result from emotions. They are harder to correct…

Q: For both tests of controls and substantive tests of details, non-sampling risk can be reduced by…

A: Solution Concept Sampling risk               Sampling refers to the examination of the sample from…

Q: The maximum amount of error in a population that the auditor is willing to accept is referred to as…

A: Acceptable risk is the auditor’s level of risk that they are willing to accept to release an…

Q: What responses should an auditor take based on different levels of acceptable detection risk (DR)?…

A: There are different ways an auditor responds to fraud risks that are assessed and it depends upon…

Q: ome account balances such as those for pensions and leases are the result of complex calculations.…

A: Answer: The correct answer is (3) inherent risk.

Q: Statistical sampling cannot be used to test all control activities. TRUE OR FALSE? WHY?

A: Solution : Concept Statistical sampling               In an audit two methods of sampling can be…

Q: In which of the following situations would an auditor most likely choose a substantive strategy and…

A: An auditor is most likely to adopt substantive strategy and avoid sampling transactions to test…

Q: The higher the risk of material misstatements the lower should audit risk be taken. True or false

A: Audit risk is the risk that an auditor expresses an inappropriate opinion.  This is the risk that…

Q: Inherent risk is: a. the risk of a misstatement occurring irrespective of any internal controls put…

A: A financial audit seems to be an impartial evaluation and analysis of a firm's financial statements…

Q: High levels of assurance mean _______.     A. lower levels of non-sampling risk that the sample is…

A: High Level of Assurance: The greater the degree of assurance offered, the greater the amount of…

Q: Which one of the following is the main problem with using non-probability sampling technique? a. The…

A: Nonprobability sampling is a technique where the samples are selected without the random selection…

Q: If nothing is known about the probabilities of the chance outcomes, what is the recommendeddecision…

A: Decision analysis is the selection of a decision from a set of possible decision alternatives when…

Q: Which of the following is correct about control risk? Select one: a. None of the above b. It is the…

A: There are different types of risk in audit. Control risk is type of one such risk.

Q: How can an auditor reduce a client’s inherent risk?

A: Inherent risk is the risk of material misstatement assuming there are no related controls. Inherent…

Q: What are the advantages and disadvantages of an adverse audit

A: Adverse audit refers that the opinion has been provided on the financial statements that: The…