A Measure of the Auditor's Assessment of the Likelihood That

question 58

Multiple Choice

A measure of the auditor's assessment of the likelihood that there are material misstatements in an account before considering the effectiveness of the client's internal control is called:

• A) control risk.
• B) acceptable audit risk.
• C) inherent risk.
• D) statistical risk.

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Definitions:

Petition

A formal written request, often signed by many people, appealing to authority with respect to a particular cause or concern.

Debtor

An individual or organization that owes money to another entity.

Chapter 7

Chapter 7 refers to a chapter of the U.S. Bankruptcy Code that provides for the liquidation of a debtor's non-exempt assets to pay off creditors.

Fresh Start

An opportunity to begin again or reset one's circumstances often in a positive and improved direction.