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:

Premorbid Levels

Refers to an individual's state of psychological and physical health before the onset of a disorder or disease.

Perceptual Distortions

Alterations in perception that can affect sense or understanding of the environment in a way that differs from reality.

Cerebral Function

The various activities and capacities of the brain, encompassing cognitive abilities, sensory processing, and control over motor functions.

Visual Hallucinations

The perception of seeing something that is not present in reality, often associated with psychiatric or neurological conditions.