In Addition to Representing an Assessment of Whether a Client's

question 45

Multiple Choice

In addition to representing an assessment of whether a client's internal control is effective for preventing or detecting misstatements,control risk also represents the

• A)reliability of management in preventing or detecting fraud.
• B)auditor's intention to rely on internal controls.
• C)likelihood that the auditor will detect illegal acts.
• D)possibility of collusion occurring between two employees.

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Definitions:

Representative Subset

A portion of a larger group or data set that accurately reflects the characteristics or distribution of the whole.

Entire Group

Refers to the totality of members within a specified set or collection without exception.

Random Sample

A sample selected from a larger population in such a way that each member has an equal chance of being included, enhancing representativeness.

Laboratory Experiments

Controlled experiments conducted in a lab setting where variables can be manipulated and outcomes can be measured precisely.