Control Risk Is

question 14

Multiple Choice

Control risk is

• A)the probability that a material misstatement could not be prevented or detected by the entity's internal control policies and procedures.
• B)the probability that a material misstatement could occur and not be detected by auditors' procedures.
• C)the risk that auditors will not be able to complete the audit on a timely basis.
• D)the risk that auditors will not properly control the staff on the audit engagement.

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Definitions:

Shopping Products

Goods that consumers purchase after comparing quality, price, and style from several sellers.

Selective Outlets

Retail locations chosen for the distribution of particular products based on specific criteria like demographics or brand philosophy.

Special Order

A request for a product that is not regularly stocked by a retailer, often requiring a special purchase from the supplier.

Manufacturer

A person or company that makes goods for sale, typically on a large scale.