CAF-8 · Chapter 3 · Question 2 of 10
An auditor assesses that a client has weak physical security at its warehouse and no segregation of duties in inventory management. Which component of the audit risk model does this directly increase?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Control Risk
Explanation
Control risk is the risk that a misstatement could occur and not be prevented, or detected and corrected, on a timely basis by the entity's internal controls.
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