What Does the Effectiveness of Internal Controls Influence

question 90

Multiple Choice

What does the effectiveness of internal controls influence?

• A)Inherent risk.
• B)Control risk.
• C)Risk of material misstatement.
• D)Both B and C.

---

Definitions:

Habituation

the process by which an individual becomes accustomed to a stimulus after repeated exposure, leading to a decrease in their response.

Pay Less Attention

Act of giving reduced focus or importance to something, potentially leading to overlooking or ignoring it.

Indeterminate Cleavage

Type of cleavage characteristic of deuterostomes; during early cleavage each cell has the potential of developing into a complete embryo. Compare with determinate cleavage.

Deuterostomes

A major lineage of animals characterized by embryonic development where the anus forms before the mouth, including vertebrates and several other phyla.