Tolerable Misstatement Does Not Affect Audit Risk, Inherent Risk, Control

question 41

True/False

Tolerable misstatement does not affect audit risk, inherent risk, control risk, or planned detection risk yet the combination of the tolerable misstatement and the four risks will determine the amount of planned audit evidence.

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Definitions:

On-Premise Computing

A model of IT management in which companies own their IT infrastructure (their software, hardware, networks, and data management) and maintain it in their data centers.

Business Environments

The combination of all internal and external factors that influence a company's operating situation, including customers, competitors, stakeholders, suppliers, industry trends, regulations, and other external forces.

Cloud Computing

The delivery of different services through the Internet, including data storage, servers, databases, networking, and software, aiming at flexibility, scalability, and cost-efficiency.

Reliability

The measure of consistency and dependability in a product's performance, ensuring it operates as expected over a given period.