Assuming a Lack of Internal Control in a Client's System

question 48

Multiple Choice

Assuming a lack of internal control in a client's system, the risk of material misstatement is known as?

• A)Audit risk
• B)Detection risk
• C)Inherent risk
• D)Client risk

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Definitions:

Founding Entrepreneur

The individual who establishes a startup or business, taking on the risks and rewards associated with its success or failure.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions and managing overall operations.

Competitive Responses

Actions taken by companies to address competition, adapt to market changes, and sustain or improve their market position.

Failure Rate

The proportion of businesses or projects that do not achieve their goals and are deemed unsuccessful.