Control Risk Is a Measure of the Auditor's Expectation That

question 20

Multiple Choice

Control risk is a measure of the auditor's expectation that internal controls will

• A)prevent material misstatements from occurring.
• B)detect and correct material misstatements.
• C)either prevent material misstatements or detect and correct them.
• D)neither prevent material misstatements nor detect and correct them.

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Definitions:

Material

Any substance or mixture of substances intended for use in various processes or for the manufacture of products.

Density

Density is a physical property that measures the mass of a substance per unit volume, used to characterize the compactness of a material.

Volume

A measurement of the amount of space an object or substance occupies, often measured in liters, cubic meters, or gallons.

Mass

An evaluation of how much material an object holds, commonly measured in kilograms or grams.