Inherent Risk and Control Risk Differ from Detection Risk in Which

question 16

Multiple Choice

Inherent risk and control risk differ from detection risk in which of the following ways?

• A)Inherent risk and control risk are calculated by the client.
• B)Inherent risk and control risk exist independently of the audit.
• C)Inherent risk and control risk are controlled by the auditor.
• D)Inherent risk and control risk exist as a result of the auditor's judgment about materiality.

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Definitions:

Substitute Goods

Products or services that can be used in place of each other, fulfilling similar needs or desires for the consumer.

Relevant Time Period

The specific duration during which certain actions are undertaken or conditions apply, significant for analysis or decisions.

Price Elasticity

An indicator that measures the impact of price change on the demand for a good.

Cannondale Mountain Bike

Cannondale Mountain Bike is a specific type of bicycle designed for off-road cycling, produced by the Cannondale Bicycle Corporation, known for its innovation and quality.