Multiple Choice
Which of the following statements regarding the risk-based reasoning (RBR) matrix is FALSE?
A) The RBR matrix is an attempt to summarize all the possibilities of accounting uncertainties that an auditor may encounter and classify them by reporting types.
B) The RBR matrix focuses on AudR levels.
C) Under the RBR system of risk-based reasoning for accounting estimates,there are three possible ranges or regions of probabilities of payoffs to consider.
D) The main use of the RBR matrix is to provide a convenient decision aid for any reporting situation involving future events.
Correct Answer:
Verified
Correct Answer:
Verified
Q39: Calibration is achieved through repetition and feedback,which
Q40: What is a risk-based reasoning (RBR)matrix and
Q41: The tendency to value what we have
Q42: The tendency to exaggerate the inevitability of
Q43: The susceptibility of an accounting estimate and
Q45: In CAS 540,quantified uncertainty is referred to
Q46: Accounting estimate nirvana occurs when the width
Q47: Under Canadian audit standard CAS 706,the auditor
Q48: Misstatements are defined as the difference between
Q49: Uncertainty situations may cause audit reports to