Inherent Risk Is the

question 119

Multiple Choice

Inherent risk is the

• A) Probability that some accounts are more susceptible to misstatement than others.
• B) Probability that the client's internal control policies and procedures will fail to detect material misstatements.
• C) Probability that material misstatements have occurred in transactions entering the accounting system used to develop financial statements.
• D) Probability that the auditor may not detect material misstatements in the financial statements.

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Definitions:

Degree Of Retardation

A measure of the extent of intellectual disability or delay in an individual's cognitive development relative to population norms.

Cognitive Universalism

Theory that concepts are universal and influence the development of language.

Linguistic Relativity Hypothesis

The theory suggesting that the structure of a language affects its speakers' worldview or cognition.

Terman's Study

A longitudinal research project led by Lewis Terman that began in 1921 to study intellectual and personal development of gifted children over their lifespan.