Control risk is the probability that audit procedures will fail to detect material misstatements in the financial statements.

Question

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Control risk is the risk that a misstatement that could occur in an account balance or class of transactions and that could be material, either individually or when aggregated with misstatements in other balances or classes, will not be prevented, or detected and corrected, on a timely basis by the entity's internal control. Audit procedures are designed to test the effectiveness of these controls, not the probability of their failure.

Control Risk Is the Probability That Audit Procedures Will Fail