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:

Appraisal Interview

An interview in which a supervisor shares information with an employee about his or her job performance; also known as a performance review.

Confidential Information

Sensitive data or knowledge that is not to be shared with the general public and is protected for privacy or security reasons.

Ethical Principle

A fundamental guideline or belief that helps determine the rightfulness or wrongfulness of actions and decisions, often underpinning moral conduct.

Beliefs

Fundamental convictions or opinions held by an individual or group.