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.

---

Definitions:

Property Taxes

Taxes levied by local governments based on the assessed value of real property.

Revenue Recognition

The accounting principle that revenue should be recorded when it is earned, regardless of when the payment is received.

Federal Grant

A sum of money given by the federal government to a state, organization, or individual for a specific purpose or project.