The Risk of Assessing Control Risk Too Low Is

question 63

Multiple Choice

The risk of assessing control risk too low is

• A)an error that will affect the efficiency of the audit
• B)an error that will affect the effectiveness of the audit
• C)an error that will affect the reliability of the audit
• D)an error that will affect the relevance of the audit

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Definitions:

Projected Sales

Estimated revenue figures based on market analysis and sales patterns, used for business planning and forecasting.

Depreciation

The systematic allocation of the cost of a tangible or physical asset over its useful life, recognizing it as an expense.

Tax Rate

The fiscal percentage deducted as tax from an individual's or corporation's income.

CCA Class

Capital Cost Allowance Classes are categories in tax systems that determine the depreciation rate for tax purposes on assets.