Control risk is
A)the probability that the auditor will render an unqualified opinion on financial statements that are materially misstated
B)associated with the unique characteristics of the business or industry of the client
C)the likelihood that the control structure is flawed because controls are either absent or inadequate to prevent or detect errors in the accounts
D)the risk that errors not detected or prevented by the control structure will also not be detected by the auditor

Question

Quizplus · Accepted Answer

Control risk is the risk that the control structure is flawed because controls are either absent or inadequate to prevent or detect errors in the accounts. It refers to the risk that a material misstatement may not be prevented, or detected and corrected by the entity’s internal control.

Control Risk Is