Using the Audit Risk Model, Audit Risk Describes Targeted Assurance

question 59

Multiple Choice

Using the audit risk model, audit risk describes targeted assurance, while control risk and inherent risk are assessed based upon a variety of factors. Of the components of the audit risk model, which is most likely to be set to 100%?

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

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Definitions:

Focused Differentiation Strategy

A business approach that targets a specific segment of the market by offering unique features that satisfy the particular needs of that segment.

Unique Product

A good or service that is distinct in the marketplace due to its unique features, benefits, or technology, setting it apart from competitors.

Special Market Segment

A specific portion of the market identified by unique characteristics, differentiating it from the broader market.

Differentiation Strategy

A business approach where companies aim to develop and market unique products or services to stand out from competitors and attract a specific segment of customers.