The Risk That an Auditor's Procedures Will Lead to the Conclusion

question 65

Multiple Choice

The risk that an auditor's procedures will lead to the conclusion that a material error does not exist in an account balance when, in fact, such error does exist is referred to as

• A) audit risk.
• B) inherent risk.
• C) control risk.
• D) planned detection risk.

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Definitions:

Procurement Cycle

describes the process of sourcing, acquiring, and managing resources and materials needed for production or operation in an organization.

Retailer

An enterprise or individual who markets products for personal or domestic consumption by customers.

Distributor

An intermediary entity in the supply chain that purchases products from manufacturers or wholesalers and sells them to retailers or directly to consumers.

Push Processes

A strategy in manufacturing and supply chain management where products are produced or ordered in anticipation of demand rather than in response to it.