Detection Risk Occurs When Internal Control Activities Fail to Detect

question 48

True/False

Detection risk occurs when internal control activities fail to detect material misstatements.

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Definitions:

Common Good

A concept referring to either policies or infrastructure that benefit all members of a community or society.

External Good

Often misinterpreted; should likely be "external good," relating to positive externalities, benefits received by those not directly involved in a transaction.

Nonrival-in-consumption

A property of a good whereby one person's consumption does not diminish the utility of that good for others.

Consumption

The process by which goods and services are used up by consumers, reflecting the end use of products and services in an economy.