Control risk is
A)the susceptibility of management assertions in an accounting business process to a material misstatement assuming no internal controls
B)the risk that internal controls fail to prevent or detect misstatements in the financial statements
C)the risk that substantive audit procedures fail to detect misstatements in the financial statements
D)the risk of assuming a clean opinion when the financial statements are materially incorrect

Question

Quizplus · Accepted Answer

Control risk is the risk that internal controls fail to prevent or detect misstatements in the financial statements. Therefore, option B is the correct answer. Option A refers to inherent risk, while option C refers to detection risk, and option D refers to audit risk.

Control Risk Is