Control risk refers to the risk that a misstatement could occur in an assertion about a class of transaction,account balance,or disclosure,and which 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 is a real and significant risk for audit professionals, and it refers to the likelihood that a misstatement could occur for a transaction, account balance, or disclosure that will not be detected or corrected in a timely way by an entity's internal control. This misstatement could be material on its own, or it could be aggregated with other misstatements to create a significant problem. Therefore, audit professionals must assess control risk when conducting their audits to ensure that they can provide an accurate and reliable opinion on an entity's financial statements.

Control Risk Refers to the Risk That a Misstatement Could