Using the acceptable audit risk model,audit risk describes targeted assurance,while control risk and inherent risk are assessed based upon a variety of factors.Of the components of the audit risk model,which is most likely to be set to 100%?
A)acceptable audit risk
B)control risk
C)detection risk
D)inherent risk

Question

Quizplus · Accepted Answer

Control risk is the risk that a misstatement that could occur in an account balance or class of transactions and that could be material, either individually or when aggregated with misstatements in other balances or classes, will not be prevented, or detected and corrected, on a timely basis by the entity's internal control. It is often set at 100% in situations where the auditor decides not to rely on the internal controls of the entity or cannot rely on them due to weaknesses in the internal control system. This means the auditor assumes that the internal controls do not mitigate any risk.

Using the Acceptable Audit Risk Model,audit Risk Describes Targeted Assurance,while