Audit Risk Is the Risk That a Client's System of Internal

question 33

True/False

Audit risk is the risk that a client's system of internal controls will not prevent or detect a material misstatement.

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Definitions:

Administrative Procedures Act

A United States federal statute that governs the way administrative agencies of the federal government may propose and establish regulations.

Rule-Making Proceedings

Administrative process through which federal or state agencies create, amend, or repeal regulations, involving publication of proposed rules, public comment, and final enactment.

Human Resources

The department within an organization that deals with recruitment, management, and direction of people who work in the organization.

Internal Components

Elements or parts within a system or organization that contribute to its structure, function, or operations.