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Explain the Various Components of Risk in the Audit Risk

question 15

Essay

Explain the various components of risk in the audit risk model and the interrelationship between the various components.


Definitions:

Charismatic Authority

Is based on a belief in the claims of extraordinary individuals that they are inspired by a god or some higher principle.

Western Political Sociologists

Scholars from Western countries who study the social aspects of politics, including the distribution of power and resources, political behavior, and institutional organization.

Democratic Nations

Countries that operate under a form of government in which the people have the authority to deliberate and decide legislation, or to choose governing officials to do so.

Social Preconditions

Refers to societal factors or conditions that must exist before a particular development or change can occur.

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