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.

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Definitions:

Stage Performance

The act of presenting a work of art, typically drama or music, in front of a live audience on a stage.

Team Member

An individual who is part of a group working together towards a common goal.

Spokesperson's Behavior

The manner in which a designated representative communicates or behaves on behalf of an organization or group.

Ethical Pressures

Refers to the moral challenges and dilemmas that individuals or organizations face, which can impact decision-making and behavior.