Control risk is:
A)The risk that a client's system of internal controls will prevent or detect a material misstatement.
B)The risk that a client's system of internal controls will not prevent or detect a material misstatement.
C)The susceptibility of an assertion to a material assertion assuming there are no related controls.
D)None of the above.

Question

Quizplus · Accepted Answer

Control risk is the risk that a client's system of internal controls will not prevent or detect a material misstatement. Option A describes the assessment of control risk, while option C describes inherent risk. Option D is not correct.

Control Risk Is