The Risk That, Due to the Application of an Inappropriate

question 69

Multiple Choice

The risk that, due to the application of an inappropriate audit procedure, an auditor will conclude that a material error does not exist in an account balance when, in fact, such error does exist is referred to as:

• A)sampling risk.
• B)control risk.
• C)non-sampling risk.
• D)inherent risk.

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Definitions:

Congressional Charter

An official license granted by the United States Congress that allows an organization to operate with specific privileges and immunities.

Corporate Social Responsibility

Practices and policies undertaken by a company to have a positive impact on society, including environmental, social, and economic aspects.

Conscious Marketing

An ethical approach to marketing that recognizes the broader impact of business practices on society, the environment, and stakeholders.

Corporate Social Responsibility

A business model that helps a company be socially accountable—to itself, its stakeholders, and the public. By practicing corporate social responsibility, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.