Inherent Risk and Control Risk Differ from Detection Risk in Which

question 16

Multiple Choice

Inherent risk and control risk differ from detection risk in which of the following ways?

• A)Inherent risk and control risk are calculated by the client.
• B)Inherent risk and control risk exist independently of the audit.
• C)Inherent risk and control risk are controlled by the auditor.
• D)Inherent risk and control risk exist as a result of the auditor's judgment about materiality.

---

Definitions:

Action Of Negligence

A legal claim made against someone for harm caused by their failure to act as a reasonable person would under similar circumstances.

Six Elements

Essential components required for something to be complete or legally binding; the term contextually varies, such as in contracts or scientific compositions.

Propensity

A natural inclination or tendency towards a particular behavior or action.

Keeper

An individual responsible for the care or management of something, such as a property, animal, or institution.