The Possibility That a Material Error Will Occur Even Though

question 74

Multiple Choice

The possibility that a material error will occur even though auditors are following audit procedures and using good judgment is referred to as

• A)control risk.
• B)detection risk.
• C)inherent risk.
• D)investigating risk.

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Definitions:

General Direction

The broad, overarching path or course that an individual or organization intends to follow to achieve their goals or objectives.

Position of Influence

A role or situation where an individual has the power to affect decisions or actions of others.

Formal Leader

An individual who holds an official or authorized leadership position within an organization and has specific responsibilities and powers.

Officially Designated

Formally recognized or identified by an authoritative or governing body as having a particular status or role.