Control Risk Is the Risk That

question 23

Multiple Choice

Control risk is the risk that:

• A) an auditor expresses an inappropriate audit opinion when a financial statement is materially misstated.
• B) an auditor's substantive procedures will not detect material misstatements.
• C) a client's system of internal controls will not prevent or detect a material misstatement.
• D) none of the above

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Definitions:

Responding

The act of replying or reacting to something that has been said or done.

Social Contract Ethics

A theory in philosophy that posits moral and political rules are based on a contract or agreement among people to form the society in which they live.

Traditional Competitive Bargaining

A negotiation approach that primarily focuses on winning or gaining advantage over the opposing party.

Unethical Tactics

Strategies or behaviors that are morally wrong or against accepted standards of conduct, especially in a professional or business context.