Which of the Following Terms Best Describes the Risk That

question 41

Multiple Choice

Which of the following terms best describes the risk that audit evidence will fail to detect misstatements exceeding tolerable misstatement?

• A)Audit risk.
• B)Control risk.
• C)Detection risk.
• D)Inherent risk.

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Definitions:

WARN

The Worker Adjustment and Retraining Notification Act, a U.S. labor law requiring most employers with 100 or more employees to provide 60-day advance notification of plant closings and mass layoffs.

Flash Flood

A rapid flooding of low-lying areas, usually caused by intense rainfall over a short period of time.

Legal Obligations

Duties enforced by law that require an individual or entity to act or refrain from acting in a certain way.

Wrongful Discharge

An illegal termination of employment, breaching contract terms or violating statutory or common law rules protecting employees.