Inherent Risk Is the

question 119

Multiple Choice

Inherent risk is the

• A) Probability that some accounts are more susceptible to misstatement than others.
• B) Probability that the client's internal control policies and procedures will fail to detect material misstatements.
• C) Probability that material misstatements have occurred in transactions entering the accounting system used to develop financial statements.
• D) Probability that the auditor may not detect material misstatements in the financial statements.

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Definitions:

Custom Function

A user-defined operation in software that performs specific calculations or actions not built-in by default.

Access Module

A component or software tool that provides a way to retrieve and manage data from a database or information system.

Visual Basic

A programming language developed by Microsoft, designed to be easy to learn and use, primarily for creating Windows applications.

Object Prefixes

Prefixes added to the names of programming objects (like variables, functions) to indicate their type or scope for better code organization and readability.