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 where...

50.1K

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

QUESTION 3: LIABILITIES, PROVISIONS AND CONTINGENCIES(a) Briefly explain the differences between provisions,contingencies and other...QUESTION...

Accounting
Q

2 The four primary symptom clusters of substance use disorders in the DSM 5TM are...

Biology
Q

The physical characteristics of a cell influence how it functions For example the surface area...

Biology
Q

9 What is the value of tan A 3 3 3 B C 3 D...

Geometry
Q

A taxi driver buys a new car for $50,000. The car will have a scrap...

Basic Math
Q

A magazine provided results from a poll of 1500 adults who were asked to identify...

Statistics
Q

Find the area of the shaded region f x x 8x 21x g x 6x...

Calculus
Q

Based on all of the information you have gathered about global warming you should now...

Algebra
Q

Discover the liquidity, solvency, and profitability ratios for Honda Motor Co. and Toyota Motor Co.

Accounting
Q

Can you solve it quickly please!! Random Servicing . It is not...

Accounting
Q

Consider four different stocks, all of which have a required return of 18.75 percent and...

Finance
Q

Mahmoud Manufacturing buys rugs to resell to customers. Mahmoud's December 31st T-Account balances, before recording...

Accounting