Control Risk Is ________

question 36

Multiple Choice

Control risk is ________.

• A) the probability that a material misstatement could occur and not be prevented or detected by the company's internal control policies and procedures
• B) the probability that a material misstatement could occur and not be detected by the auditor's audit procedures
• C) the risk that the auditor will not be able to complete the audit on a timely basis
• D) the risk that the auditor will not properly control the staff on the audit engagement

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Definitions:

Superordinate Goals

Objectives that are important to more than one party and can only be achieved through the cooperation of all parties involved.

Underlying Sources

The fundamental origins or causes of an event, situation, or condition.

Superordinate Conflict Resolution

A method of resolving conflict by focusing on shared goals that transcend the specific interests of the conflicting parties.

Organizational Life

The stages through which an organization progresses, including birth, growth, maturity, decline, and death or revitalization.