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:

Oral Stage

The first stage in Freud's psychosexual development theory, occurring in the first year of life, where pleasure is focused on oral activities such as sucking and biting.

Phallic Stage

A phase in Freud's psychosexual development theory occurring around age three to six, where the child's libido (sexual energy) is focused on the genital area.

Genital Stage

In Freudian psychosexual stages, the final stage beginning in puberty in which sexual desire is prominent and focused on genitalia.

Toilet Trained

The process during which a young child learns to use the toilet for urination and defecation independently.