Control Risk Is

question 31

Multiple Choice

Control risk is

• A)The probability that a material misstatement could occur and not be prevented or detected by the company's internal control policies and procedures.
• B)The probability that a material misstatement could occur and not be detected by the auditor's audit procedures.
• C)The risk that the auditor will not be able to complete the audit on a timely basis.
• D)The risk that the auditor will not properly control the staff on the audit engagement.

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Definitions:

Forecast Error

The difference between the actual value and the predicted value in a forecast, indicating the accuracy of the forecasting process.

Weighting Scheme

A method of assigning different weights or importance to various elements or criteria in order to calculate a composite score or make decisions.

Exponential Smoothing

A technique used in time-series analysis to smooth data and forecast by giving greater weight to more recent observations.

Exponential Smoothing Forecast

A time series forecasting method that applies decreasing weights to older data.