In Addition to Representing an Assessment of Whether a Client's

question 45

Multiple Choice

In addition to representing an assessment of whether a client's internal control is effective for preventing or detecting misstatements,control risk also represents the

• A)reliability of management in preventing or detecting fraud.
• B)auditor's intention to rely on internal controls.
• C)likelihood that the auditor will detect illegal acts.
• D)possibility of collusion occurring between two employees.

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Definitions:

Performance Ratings

The evaluation of an employee's work performance over a certain period of time.

Policy Decision

A deliberate choice or determination made by those in authority regarding the adoption of certain policies or courses of action.

Tangible Aspects

pertain to the physical and material elements of something that can be observed and measured.

Employment Experience

The accumulation of knowledge, skills, and competencies gained through working in various job roles.