The Ultimate Purpose of Control Risk Assessment Is to

question 88

Multiple Choice

The ultimate purpose of control risk assessment is to

• A) estimate the overall risk of failing to detect material misstatements.
• B) decide the nature, timing, and extent of further audit procedures.
• C) determine the risk of incorrect acceptance.
• D) determine the probability that errors entered the accounts.

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Definitions:

Automatic Processing

Cognitive processes that occur without conscious thought or effort, often enabling quick responses or decisions based on learned information.

Peripheral Cue

in the context of persuasion, refers to environmental or contextual factors that influence people's attitudes or responses, rather than the central quality of the message itself.

Year-To-Year Temperatures

Relates to the comparison of temperatures over consecutive years, often used in the study of climate change and global warming trends.

Central Processing

A cognitive processing route that involves careful and thoughtful consideration of persuasive message content.