How Much Control Does the Auditor Have Over Inherent Risk

question 53

Multiple Choice

How much control does the auditor have over inherent risk?

• A)The auditor adjusts the controls that are considered (high level of control).
• B)The auditor considers inherent risk for the business as a whole (some control).
• C)The auditor assesses the factors that make up inherent risk (no control).
• D)The auditor calculates inherent risk values as a residual (no control).

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Definitions:

Reluctant Agent

A person or entity that acts with hesitation or unwillingness, typically in a scenario requiring action or decision-making.

Social Reference

The use of external sources, such as people or standards, to guide behavior and attitudes.

Legitimate Parent

A parent who has legal recognition as the lawful mother or father of a child, often in the context of marital status or legal acknowledgment.

Identity Diffusion

A state in which an individual has not yet achieved a sense of identity or clear direction in life, often characterized by lack of commitment to goals or values.