By Assessing Control Risk as High, an Auditor Has Determined

question 33

Multiple Choice

By assessing control risk as high, an auditor has determined that their client's system of internal controls

• A) is unlikely to be effective in mitigating inherent risks identified.
• B) is very effective at preventing or detecting material misstatements.
• C) is very strong.
• D) will eliminate the possibility of material fraud or error.

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Definitions:

Sample

A subset of a population. See Population.

Obtained Value

The specific result or number arrived at after conducting an experiment or calculation.

Critical Value

A point on the scale of the test statistic beyond which the hypothesis is rejected.

Null Hypothesis

A hypothesis that there is no significant difference or effect, serving as the default assumption to be tested in statistical hypothesis testing.