If Results from the Tests of Controls Show the Internal

question 140

Multiple Choice

If results from the tests of controls show the internal control is effective at preventing and/or detecting material misstatements, auditors will conclude that control risk is ______ and overall risk of material misstatement (RMM) is ______.

• A)low; low
• B)high; high
• C)high; low
• D)low; high

---

Definitions:

Private Branding

A strategy where products manufactured by one company are sold under another company's brand or label.

Private Labeling

A retail strategy where products are manufactured by one company but sold under another company's brand, often to offer exclusive branded products without the cost of manufacturing.

Reseller Branding

Strategy where a company sells products manufactured by others under its own brand name.

Private Branding

A strategy where products are produced by one company but are sold under another company's brand or label.