The Ultimate Purpose of Assessing Control Risk Is to Contribute

question 92

Multiple Choice

The ultimate purpose of assessing control risk is to contribute to the auditor's evaluation of the

• A) Factors that raise doubts about the auditability of the financial statements.
• B) Operating effectiveness of internal control policies and procedures.
• C) Risk that material misstatements exist in the financial statements.
• D) Possibility that the nature and extent of substantive tests may be reduced.

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Definitions:

Counterfeit Mark

is an unauthorized reproduction or imitation of a trademark, logo, or stamp intended to deceive or defraud.

Destroyed Without Compensation

Refers to a situation where property is damaged or destroyed without any form of restitution or payment to the owner.

Genetically Engineered

Organisms whose genetic material has been artificially manipulated in a laboratory through genetic modification technology.

Patent

A government-granted exclusive right to an inventor to make, use, and sell an invention for a certain number of years.