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.

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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 1 year ago

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