STRAYER ACC403 FINAL EXAM PART 1 AND 2QuestionAcc403 final part 1Question 16 out of 6 pointsAuditors frequently refer to the terms audit assurance, overall assurance, and level of assuranceto refer to ________.A. detection riskB. audit report riskC. acceptable audit riskD. inherent riskQuestion 26 out of 6 pointsIf an auditor believes the chance of financial failure is high and there is a corresponding increasein business risk for the auditor, acceptable audit risk would likely:A. be reducedB. be increased.C. remain the same.D. be calculated using a computerized statistical package.Question 36 out of 6 pointsIf it is probable that the judgment of a reasonable person will be changed or influenced by theomission or misstatement of information, then that information is, by definition of FASBStatement No. 2:A. material.B. insignificant.C. significant.D. relevant.Question 46 out of 6 pointsWhen auditors allocate the preliminary judgment about materiality to account balances, themateriality allocated to any given account balance is referred to as:A. the materiality range.B. the error range.C.tolerable materiality.D. tolerable misstatement.Question 56 out of 6 pointsWhen the auditor is attempting to determine the extent to which external users rely on a client'sfinancial statements, they may consider several factors except for:A. client size.B. concentration of ownership.C. types and amounts of liabilities.D. assessment of detection risk.