Ethics, Responsibilities, and Planning Practice Question

Question

A student must apply the concept rather than define it only for the CPA AUD Auditing and Attestation involving audit risk in Ethics, Responsibilities, and Planning. Which option best reduces risk or error? (Item 84)

Answer choices

1. A. Choose an answer that removes accountability from the responsible professional.
2. B. Escalate only after taking irreversible action without reviewing the facts.
3. C. Treat all similar terms as interchangeable without checking the scenario context.
4. D. The best answer is to select the audit response that best supports sufficient appropriate evidence, professional skepticism, and proper reporting for the audit risk scenario.

Correct Answer

D. The best answer is to select the audit response that best supports sufficient appropriate evidence, professional skepticism, and proper reporting for the audit risk scenario.

Explanation

The correct answer is D because audit risk is tested by asking candidates to select the audit response that best supports sufficient appropriate evidence, professional skepticism, and proper reporting. The distractors reflect common exam mistakes: ignoring context, using informal shortcuts, skipping verification, or applying a rule from the wrong domain.

Question details

• Difficulty: hard
• Domain: Ethics, Responsibilities, and Planning
• Objective: audit risk

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