Audit Risk (3) Flashcards

1
Q

What is control risk?

A

Risk that a material misstatement that could occur in an assertion about a a class of transaction, account balance or disclosure will not be prevented or detected and corrected at a timely basis by entity’s internal control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What happens with some control risk?

A

It will always exist because of the inherent limitations of internal control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly