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    Question

    The risk that the internal control system will fail to

    prevent or detect a material misstatement is:
    A Detection Risk Correct Answer Incorrect Answer
    B Inherent Risk Correct Answer Incorrect Answer
    C Control Risk Correct Answer Incorrect Answer
    D Non-compliance Risk Correct Answer Incorrect Answer

    Solution

    Control Risk is the risk that a misstatement that could occur in an assertion 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.

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