Control risk is
A)The probability that a material misstatement could occur and not be prevented or detected by the company's internal control policies and procedures.
B)The probability that a material misstatement could occur and not be detected by the auditor's audit procedures.
C)The risk that the auditor will not be able to complete the audit on a timely basis.
D)The risk that the auditor will not properly control the staff on the audit engagement.

Question

Quizplus · Accepted Answer

Control risk refers to the risk that a company's internal controls will fail to prevent or detect a material misstatement in the financial statements.

Control Risk Is