A Measure of the Auditor's Assessment of the Likelihood That

question 95

Multiple Choice

A measure of the auditor's assessment of the likelihood that there are material misstatements in an account before considering the effectiveness of the client's internal control is called:

• A)control risk.
• B)acceptable audit risk.
• C)statistical risk.
• D)inherent risk.

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Definitions:

Information

Data that has been processed, organized, or structured in a way that is meaningful to the user.

Media Richness

The ability of a communication medium to effectively convey information, taking into account elements such as immediacy of feedback, cues available, and personal focus.

Newsletter

A periodic publication distributed to members of a group or organization, containing news, updates, and relevant information.

E-mail

A method of exchanging digital messages over the Internet between individuals or groups.