6. In claas in discuasing the audit risk model we considered several cases as followa Case Audit Inherent Contro1 Riak 01 01 Riak 30 30 Detection Riek .167 227 Riak 60 What would be the required level of detection risk for case II Compared with case I would the auditor expect to do more or less audit work (aubstantive testing) ? a. .056 leas audit work. b. .056; more audit work. e. none of the above. c. .278; less audit work d. .278; more audit work . Answer 7. "Management complies with accounting principles in determining the lower of cost or market in valuing inventory" involves which management assertion? a. Completeness b. Existence c. Rights and Obligations d. Valuation and Allocation Answer 8. An employee thinks "The company never checks anything. I won't get caught if I do this...", involves which aspect of the fraud triangle"? a. Incentive. c. Rationalization. b. Opportunity. d. Optimization. Answer 9. Company management capitalized expenses in order to increase income. This is called: a. depredation. c. financial reporting fraud, or fraudulent financial b. finaning.tion reporting. d. misappropriation of assets, or theft. e. none of the above. Answer 10. The assertion "completeness" involves a. Following accounting standards b. Ownership c. Overstatement d. Understatement