The Risk Assessment Component of Internal Controls Refers To

question 49

Multiple Choice

The risk assessment component of internal controls refers to:

• A)the auditor's assessment of control risk.
• B)the auditor's assessment of engagement 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:

Legal Point

A specific legal issue or argument raised during a case or negotiation.

Case Summary

A condensed description outlining the major points and legal decisions in a case.

Digest

A comprehensive compilation or summary of laws, cases, or articles on specific topics.

Headnote

A note, usually a paragraph long, near the beginning of a reported case summarizing the court’s ruling on an issue.