The Risk That an Error That Could Occur in an Audit

question 3

Multiple Choice

The risk that an error that could occur in an audit area and could be material,individually or in combination with other errors,will not be prevented or detected and corrected on a timely basis by the internal control system is:

• A)Inherent risk
• B)Control risk
• C)Detection risk
• D)Incontrollable risk

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Definitions:

Standard of Living

A level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Taft-Hartley Act

The Taft-Hartley Act, passed in 1947, is a United States federal law that restricts the activities and power of labor unions.

McCarran-Walter Act

A 1952 law formally known as the Immigration and Nationality Act, which established the basic structure of American immigration law, including quotas and preferences based on skills and family connections but also allowed for the exclusion and deportation of immigrants based on political beliefs.

Truman's Veto

Refers to several significant vetoes by President Harry S. Truman, including those against bills he viewed as hostile to labor or civil rights, showcasing the use of presidential power to check legislative actions.