Which of the Following Types of Risk Is of Critical

question 22

Multiple Choice

Which of the following types of risk is of critical importance to auditors in performing tests of controls?

• A)The risk of assessing control risk too low.
• B)The risk of assessing control risk too high.
• C)The risk of incorrect acceptance.
• D)The risk of incorrect rejection.

---

Definitions:

Managers

Individuals in an organization responsible for directing and controlling the work and performance of other people or teams, to achieve the company's goals.

Organic Organizational Model

A flexible, adaptive organizational structure characterized by less formalization, broad job descriptions, and a decentralized decision-making process.

Unstable

Describes a situation, structure, or system that is not firmly fixed or is likely to change or fail suddenly.

Business Climate

The general economic environment and conditions that affect the operation and growth of businesses within a specific area.