Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. control risk assessment: control risk assessment i

Control Risk Assessment: Control risk assessment is a crucial step in the audit process...

60.1K

Verified Solution

Question

Accounting

Control Risk Assessment:
Control risk assessment is a crucial step in the audit process where auditors evaluate the effectiveness of a company's internal controls in preventing or detecting material misstatements in the financial statements. Control risk refers to the risk that a material misstatement could occur in the financial statements and not be prevented or detected on a timely basis by the company's internal controls. Auditors assess control risk by understanding and testing the design and implementation of internal controls relevant to financial reporting. A lower control risk assessment implies that the auditors have more confidence in the effectiveness of the company's internal controls in mitigating the risk of material misstatements.
Objective Type Question:
Which of the following best describes control risk assessment?
A) The process of preparing financial statements
B) Evaluating the effectiveness of a company's internal controls in preventing or detecting material misstatements
C) The final audit opinion rendered by auditors
D) The detailed testing of transactions conducted by auditors
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

A bridge across a deep jorge has a capacity of 5184 pound. If the weights of...

Mechanical Engineering
1.2K views

My car is Jeep Cherokee 2016 latitude with two-wheel rear drive, and please give me a...

Psychology
1.2K views

1 Based on classic perspectives of personality (module 38), how is personality measured? (100 words minimum) 2...

Mechanical Engineering
1.2K views

Given a system of five (5) 3500-lb, 700 feet per minute (fpm) elevator cars. Gearless traction...

Statistics
1.2K views

The ages of the first 16 U S presidents at the time of their first...

Calculus
1.2K views

Find F' (x) if F(x) = ??x+1 te? dt.Evaluate 1?? 1/x dx. Show all working.

Accounting
1.2K views

4. A thirty-year $1,000 bond with annual coupons is redeemable at par and has a...

Accounting
1.2K views

Support Department Cost Allocation-Direct Method Christmas Timber, Inc., produces Christmas trees. The trees are produced...

Accounting
1.2K views

Your answer is partially correct. Try again. The following accounts appear in the ledger of...

Accounting
1.2K views

No. Account Title Debit Credit 101 Cash $ 39,064 ...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.) A company is the...

Accounting
1.2K views

The balance sheet of Buckbeak reports assets of $109,200 and liabilities of $34,000. The fair...