Answered: 19. Inherent risk is the risk that…

19. Inherent risk is the risk that internal control will fail to prevent or detect and correct the material misstatement Select one: True False

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter7: Planning The Audit: Identifying, Assessing, And Responding To The Risk Of Material Misstatement

Section: Chapter Questions

Problem 9RQSC: How does inherent risk relate to internal controls? Why is it important to assess inherent risks of...

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19. Inherent risk is the risk that internal control will fail to prevent or detect and correct the material misstatement
Select one:
True
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True or false 9. The control risk is the risk of auditors fail to detect material misstatement leads to detection risk. Explain why?
Which of the following exists as an inherent risk even in the best designed systems a. Authorization b. Collusion c. Independent checks d. Detective control
17) A control deficiency is always considered material weakness and PCAOB requires the auditors opinion on internal control to reflect this. True False
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the susceptibility of an account balance or class of transactions to misstatements that could be material, individually or when aggregated with misstatements in other balances or classes, assuming that there were no related internal control is called : Select one: a. control risk b. audit risk c. detection risk d. inherent risk
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