14. Which is a true statement about audit risk? (A) Audit risk measures the risk that a material misstatement could occur and not be detected by internal control. (B) When auditors decide on a higher acceptable audit risk, they want to be more certain that the financial statements are not materially misstated. (C) Audit assurance is the complement of acceptable audit risk. (D) There is an inverse relationship between acceptable audit risk and planned detection risk.

16. Mill, CPA, was engaged by a group of royalty recipients to apply agreedupon procedures to financial data supplied by Modern Co. regarding Modern's written assertion about its compliance with contractual requirements to pay royalties. Mill's report on these agreedupon procedures should contain a(an) (A) Disclaimer of opinion about the fair presentation of Modern's financial statements. (B) List of the procedures performed (or reference thereto) and Mill's findings. (C) Opinion about the effectiveness of Modern's internal control activities. (D) Acknowledgment that the sufficiency of the procedures is solely Mill's responsibility.

相關試題

相關試卷