By Assessing Control Risk as High, an Auditor Has Determined

question 33

Multiple Choice

By assessing control risk as high, an auditor has determined that their client's system of internal controls

• A) is unlikely to be effective in mitigating inherent risks identified.
• B) is very effective at preventing or detecting material misstatements.
• C) is very strong.
• D) will eliminate the possibility of material fraud or error.

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Definitions:

Market-based Opportunity

Opportunities identified through market analysis, indicating areas where a business can gain competitive advantage or meet unfulfilled customer needs.

Measurable Accomplishment

Achievements or milestones that can be quantitatively assessed or verified, often used as indicators of success or progress.

Need for Achievement

A personal drive in individuals leading them to pursue and attain challenging goals, often associated with a high level of ambition and effort to succeed.

Self-reliance

The ability to rely on one's own capabilities, resources, and judgments.