Strayer ACC403 Final Exam Part 1 and 2/Strayer ACC403 Final Exam Part 1 and 2

Strayer ACC403 Final Exam Part 1 and 2

Question

Question 1

Auditors frequently refer to the terms audit assurance, overall assurance, and level of assurance

to refer to ________.

A. detection risk

B. audit report risk

C. acceptable audit risk

D. inherent risk

Question 2



If an auditor believes the chance of financial failure is high and there is a corresponding increase

in business risk for the auditor, acceptable audit risk would likely:

A. be reduced

B. be increased.

C. remain the same.

D. be calculated using a computerized statistical package.

Question 3



If it is probable that the judgment of a reasonable person will be changed or influenced by the

omission or misstatement of information, then that information is, by definition of FASB

Statement No. 2:

A. material.