What Is Control Risk

question 106

Multiple Choice

What is control risk?

• A)The risk that a client's internal controls will not prevent or detect a material misstatement on a timely basis.
• B)The assessed risk of material misstatement that, in the auditor's judgment, requires special audit consideration
• C)An audit risk assessment that involves the identification of accounts and related assertions most at risk of material misstatement
• D)A risk that management's assertion, or claim, that recorded inventory exists

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Definitions:

Highly Specific

Referring to something that is precisely or strictly identified or defined.

Visual Recognition Memory

The ability to remember and recognize previously encountered visual stimuli.

Habituation

The process by which an individual becomes accustomed to a stimulus after repeated exposure, leading to a decrease in response.

Mental-Scale Items

Assessments or tasks designed to measure cognitive abilities, often used in psychological and educational testing.