alleryStart learning →A weak internal control system most directly raises which component of audit risk?
ADetection risk
BInherent risk
CControl risk
DBusiness risk
Answer & Solution
Correct answer: C. Control risk
Control risk is the chance that the entity's own controls fail to prevent or catch a misstatement, so weak controls raise it.
Keep practising Audit Planning Strategy and Execution
Browse all Audit Planning Strategy and Execution questions for CA Final, or explore more Auditing topics.
Related questions
Working papers help third parties do what?Internal audit tests the most important controls using which approach?Working papers help show that the audit was performed in line with what?Which development lets auditors analyse entire datasets instead of samples?If liquidation becomes imminent, statements are prepared on what basis?How long is the foreseeable future usually regarded under the going concern assumption?The IAASB issues which of these?Which body sets recognised standards for internal auditors?