Control Risk Is

question 21

Multiple Choice

Control risk is

• A)the susceptibility of management assertions in an accounting business process to a material misstatement assuming no internal controls
• B)the risk that internal controls fail to prevent or detect misstatements in the financial statements
• C)the risk that substantive audit procedures fail to detect misstatements in the financial statements
• D)the risk of assuming a clean opinion when the financial statements are materially incorrect

---

Definitions:

Whorfian Hypothesis

A linguistic theory that suggests the structure of a language influences its speakers' worldview or cognition.

Empirical Research

A way of gaining knowledge by means of direct observation or experience, typically involving systematic data collection and analysis.

Cultural Differences

Variations in the practices, values, and beliefs among different societies and groups.

Benjamin Whorf

A linguist known for his hypothesis that the structure of a language affects its speakers' perception and categorization of their experience, known as linguistic relativity.