The Ultimate Purpose of Assessing Control Risk Is to Contribute

question 314

Multiple Choice

The ultimate purpose of assessing control risk is to contribute to the auditor's evaluation of the:

• A) Factors that raise doubts about the auditability of the financial statements.
• B) Operating effectiveness of internal control activities.
• C) Risk that material misstatements exist in the financial statements.
• D) Possibility that the nature and extent of substantive tests may be reduced.

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Definitions:

Contingency Fee Arrangement

A payment agreement where a lawyer only gets paid if the case is won, taking a fixed percentage of the recovered amount.

Legal Research

The process of identifying and retrieving information necessary to support legal decision-making, including analysis of statutes, case law, and legal precedents.

Business Person

An individual who is actively involved in the management or ownership of a commercial enterprise.

Ongoing Relationship

A continuous interaction or association between entities that involves mutual dealings over a period of time.