Which of the Following Terms Best Describes the Risk That

question 64

Multiple Choice

Which of the following terms best describes the risk that audit procedures will fail to detect misstatements exceeding tolerable misstatement?

• A) Audit risk.
• B) Control risk.
• C) Detection risk.
• D) Inherent risk.

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Definitions:

Incremental

Describes small, gradual changes or increases made over a period of time.

Economic Information

Data related to the production, distribution, and consumption of goods and services that informs decision-making.

Acquire

To obtain ownership of something, such as a company purchasing another company or an individual acquiring an asset.

Self-Interest

The pursuit of personal gain or advantage, which is a fundamental economic assumption about human behavior.