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When Discussing Control Risk (CR)and the Audit Risk Model, Which

Question 43

Multiple Choice

When discussing control risk (CR) and the audit risk model, which one of the following statements is NOT true?


A) The relationship between CR and detection risk is inverse.
B) The relationship between CR and evidence is direct.
C) CR is a measure of the auditor's assessment of the likelihood that errors will not be prevented or detected by the client's internal control.
D) If the auditor concludes that internal control is completely ineffective to prevent or detect errors, he or she would assign a 0% to CR.

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