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:

Transactional Leaders

Leaders who focus on routine, supervision, and performance-based rewards and punishments.

Empower

To give authority or power to individuals, enabling them to take control of their situations and make significant decisions.

Transactional Leader

Refers to a style of leadership that focuses on supervision, organization, and performance, where leaders promote compliance through rewards and punishments.

Detailed And Short-Term Goals

Specific and immediate objectives set to be achieved in a short period, often serving as stepping stones towards long-term goals.