Inherent Risk and Control Risk Differ from Detection Risk in Which

question 16

Multiple Choice

Inherent risk and control risk differ from detection risk in which of the following ways?

• A)Inherent risk and control risk are calculated by the client.
• B)Inherent risk and control risk exist independently of the audit.
• C)Inherent risk and control risk are controlled by the auditor.
• D)Inherent risk and control risk exist as a result of the auditor's judgment about materiality.

---

Definitions:

Relatedness Needs

The human need to form and maintain strong, stable interpersonal relationships.

Social Needs

Human requirements for companionship, belonging, and acceptance within society or specific social groups.

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow, which presents a hierarchy of human needs in the form of a pyramid, starting from basic physiological needs to the need for self-actualization.

ERG Theory

A motivational theory developed by Clayton Alderfer that categorizes human needs into existence, relatedness, and growth needs.