All of the Following Are Components of Audit Risk Except

question 99

Multiple Choice

All of the following are components of audit risk except

• A)control risk
• B)legal risk
• C)detection risk
• D)inherent risk

---

Definitions:

Dominant Strategy

In a strategic interaction (game) between two or more players, a course of action (strategy) that a player will wish to undertake no matter what the other players choose to do.

Formal Agreements

Legally binding contracts or treaties between parties that outline specific obligations and rights.

Less Elastic

Describes a situation where demand or supply is relatively unresponsive to changes in price.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in GDP, income, employment, and trade.