Inherent Risk and Control Risk Differ from Detection Risk in That

question 53

Multiple Choice

Inherent risk and control risk differ from detection risk in that inherent risk and control risk are

• A) Elements of audit risk whereas detection risk is not.
• B) Changed at the auditor's discretion whereas detection risk is not.
• C) Considered at the individual account balance level whereas detection risk is not.
• D) Functions of the client and its environment whereas detection risk is not.

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Definitions:

Constitutional Amendments

Changes or additions made to the U.S. Constitution, requiring a significant consensus for ratification as outlined in the document itself.

Hierarchically Structured

Organized in a way that each level is ranked above or below others, typically referring to systems of organization within corporations or institutions.

Public Bureaucracies

Organizational structures within the government responsible for implementing laws and policies, consisting of non-elected officials and agencies.

Hierarchically

Arranged in order of rank, with higher levels of power or importance dominating lower ones.