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:

Alternative Transportation

Refers to modes of transport that serve as options other than personal vehicles, such as public transit, cycling, walking, and carpooling, often emphasized for their environmental benefits.

Cutting Edge

The leading position in technological or innovative advancements within a particular field.

Reverse Auction

A type of auction in which sellers bid to provide goods or services to a buyer, with prices typically decreasing over time until a winning bid is selected.

Would-Be Suppliers

Potential vendors or suppliers that are interested in providing goods or services to a company.