Control Risk Is ________

question 36

Multiple Choice

Control risk is ________.

• A) the probability that a material misstatement could occur and not be prevented or detected by the company's internal control policies and procedures
• B) the probability that a material misstatement could occur and not be detected by the auditor's audit procedures
• C) the risk that the auditor will not be able to complete the audit on a timely basis
• D) the risk that the auditor will not properly control the staff on the audit engagement

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Definitions:

Suggestion Involvement

The practice of engaging individuals in the process by inviting their suggestions, often to foster a sense of ownership and contribution.

Empowered Employees

Workers who are given authority, resources, and confidence to take initiative and make decisions within their roles.

Empowering

Providing individuals or groups with the autonomy, resources, and support required to make decisions and take actions independently.

Operational Costs

Expenses associated with the day-to-day functioning of a business or organization.