Control Risk Is

question 21

Multiple Choice

Control risk is:

• A) the risk that inventory will not be sold.
• B) the risk that the internal controls will not disclose material errors.
• C) the risk that the economy will sink into recession.
• D) the risk that accounts receivable will be uncollected.

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Definitions:

Interchange

The act of (or a place designed for) exchanging things, ideas, or communications between people or groups.

Organizational Compatibility

The degree to which an individual's values, goals, and behaviors align with the culture, values, and objectives of an organization.

Homophily

The tendency for individuals to associate and bond with similar others, often summarized as "like attracts like."

Structured Compatibility

The degree to which systems, processes, or entities are designed to match or work together in a harmonious manner.