Control Risk Is

question 108

Multiple Choice

Control risk is

• A) the probability that the auditor will render an unqualified opinion on financial statements that are materially misstated
• B) associated with the unique characteristics of the business or industry of the client
• C) the likelihood that the control structure is flawed because controls are either absent or inadequate to prevent or detect errors in the accounts
• D) the risk that auditors are willing to take that errors not detected or prevented by the control structure will also not be detected by the auditor

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Definitions:

North America

A continent located in the Northern Hemisphere, mainly situated between the Atlantic and Pacific Oceans, comprising countries like the United States, Canada, and Mexico.

Immigrating

The act of moving to a new country or region with the intention of settling and living there, often driven by factors such as employment, family, or refuge.

Discriminate

To unjustly differentiate or distinguish between people based on race, age, sex, or other prejudicial status.

Prejudiced

Having preconceived opinions or judgments about people or groups without sufficient knowledge or experience.