Control risk is:
A) the risk that inventory will not be sold.
B) the risk that the internal controls will not disclose material errors.
C) the risk that the economy will sink into recession.
D) the risk that accounts receivable will be uncollected.

Question

Quizplus · Accepted Answer

Control risk refers to the risk that a company's internal control system will not prevent or detect errors or fraud in the financial reporting process. It is related to the effectiveness of internal controls and their ability to ensure the accuracy and reliability of financial statements. Option A, D, and C all relate to other types of risks.

Control Risk Is