Which of the following is a definition of control risk? The risk that the auditor’s assessment...

Which of the following is a definition of control risk?

The risk that the auditor’s assessment of internal controls will be at less than the maximum level.

The risk that the auditor will not detect a material misstatement.

The susceptibility of material misstatement assuming there are no related internal control policies or procedures.

The risk that a material misstatement will not be prevented or detected on a timely basis by the client’s internal controls.

Expert Solution

Control risk is risk of material misstatement in financial statement arising due to absence or failure of internal control of company.

Definition of control risk: The risk that a material misstatement will not be prevented or detected on a timely basis by the client’s internal controls.

ekkarill92 answered 2 years ago

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