The Risk Assessment Component of Internal Control Refers To

question 67

Multiple Choice

The risk assessment component of internal control refers to:

• A)The auditor's assessment of control risk.
• B)The auditor's assessment of client risk.
• C)The entity's identification and analysis of risks relevant to achievement of its objectives.
• D)The entity's monitoring of the potential for material misstatements.

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Definitions:

Education

The systematic process of facilitating learning, acquisition of knowledge, skills, values, beliefs, and habits.

Scatter Diagram

A type of graph used in statistics to visually display and compare two or more variables to identify patterns, relationships, or trends.

Linear Model

A mathematical model that assumes a linear relationship between the independent and dependent variables.

Sales

The exchange of goods or services for money, constituting a primary activity for commercial businesses.