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:

CO2

Carbon dioxide, a colorless, odorless gas produced by burning carbon and organic compounds and by respiration, and absorbed by plants in photosynthesis.

O2

Symbol for oxygen, a vital element necessary for respiration in most living organisms.

Prostaglandins

Lipid compounds that have diverse hormone-like effects in animals, including mediating inflammation and pain.

Surfactant

A substance that reduces surface tension, allowing for the easier exchange of gases in the lungs and preventing alveolar collapse.