Inherent Risk Is

question 70

Multiple Choice

Inherent risk is

• A) assessed as high when there are no internal controls tested or relied upon by the auditor.
• B) assessed as low when there are good internal controls in place.
• C) the risk of a misstatement occurring irrespective of any internal controls put in place by management.
• D) the risk that the auditor's testing procedures will not detect a material misstatement.

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Definitions:

Extrapyramidal Effects

Side effects of certain medications, notably antipsychotics, that affect motor control, leading to symptoms such as tremors, rigidity, and bradykinesia.

Tardive Dyskinesia

A neurological disorder characterized by involuntary, repetitive body movements, often resulting from long-term use of certain psychiatric medications.

Muscular Rigidity

A condition characterized by a stiffening of the muscles, often associated with diseases of the central nervous system such as Parkinson's disease.

Eye-Twitching

Involuntary spasms or blinking of the eyelid, often caused by stress, fatigue, or other environmental factors.