The Risk That Audit Evidence for a Segment Will Fail

question 47

Multiple Choice

The risk that audit evidence for a segment will fail to detect misstatements exceeding tolerable misstatement is:

• A) Audit risk.
• B) Control risk.
• C) Inherent risk.
• D) Planned detection risk.

---

Definitions:

Single Leader Teams

Groups directed by one individual who makes decisions and provides guidance, contrasting with shared or distributed leadership models.

Work Group

A collection of individuals who come together to achieve a specific goal or task, often within a professional setting.

Collection of Individuals

A group of people gathered together without necessarily having a shared purpose, distinct from a team which is united by common objectives.

Team Effectiveness

Refers to the capacity of a group of individuals to achieve their goals and objectives effectively and efficiently.