Control risk refers to the risk that a misstatement could occur in an assertion about a class of transaction, account balance, or disclosure and that could be material, either individually or when aggregated with other misstatements, will not be prevented, or detected and corrected, on a timely basis by the entity's internal control.

Question

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Control risk refers to the risk that the internal control of an entity may not be able to prevent or detect and correct material misstatements in financial statements.

Control Risk Refers to the Risk That a Misstatement Could