Risk assessment should evaluate whether controls sufficiently address identified risks of material misstatements due to fraud and
A) controls specifically designed to prevent fraud.
B) controls intended to address the risk of collusion.
C) controls intended to address the risk of management override of these controls.
D) controls specifically designed to prevent material misstatements.

Question

Quizplus · Accepted Answer

Risk assessment should evaluate controls intended to address the risk of management override of these controls, as management override is a significant risk for material misstatements due to fraud.

Risk Assessment Should Evaluate Whether Controls Sufficiently Address Identified Risks