The Risk Assessment Component of Internal Controls Refers to

question 95

Multiple Choice

The risk assessment component of internal controls refers to

• A) The auditor's assessment of control risk.
• B) The auditor's assessment of client risk.
• C) The entity's identification and analysis of risks relevant to achievement of its objectives.
• D) The entity's monitoring of the potential for material misstatements.

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Definitions:

Objective Data

Information that is based on observable and measurable facts, independently of any personal feelings, interpretations, or prejudice.

Interpretations

The act of explaining or understanding the meaning of something, such as a text, situation, or behavior.

Variety of Data

The collection of data in different forms or from various sources, encompassing multiple types, categories, or characteristics.

Charismatic

Possessing an exceptional personal charm or appeal that inspires devotion in others.