If inherent risk is high and control risk is medium, then:   a.The level of audit risk and detection risk are both medium.b.Detection risk is low.c.Detection risk is high.d.The level of audit risk is high.e.The level of audit risk is low.

If the results from tests of controls demonstrate that the internal controls are operating effectively, how will the auditor assess the levels of control risk and detection risk? Question 11Answer a. The level of control risk will be assessed as low. To achieve an acceptable level of audit risk the auditor can accept a lower level of detection risk. b. The level of control risk will be assessed as higher. To achieve an acceptable level of audit risk the auditor can accept a lower level of detection risk. c. The auditor determines that the internal controls are operating effectively, the level of control risk will be assessed as low. To achieve an acceptable level of audit risk the auditor can accept a higher level of detection risk. d. The level of control risk will be assessed as high. To achieve an acceptable level of audit risk the auditor can accept a higher level of detection risk.

Audit risk is composed of 3 factors. Which of the following is NOT one of those factors? a. Compliance risk b. Detection risk c. Control risk d. Inherent risk

Question 8Which of the following statements accurately describe risk? Select all that apply.1 pointOrganizations often rate risks at different levels: low, medium, and high.Website content or published research data are examples of low-risk assets.If compromised, a medium-risk asset may cause some damage to an organization's finances. If compromised, a high-risk asset is unlikely to cause financial damage.

Match each statement below with the appropriate term that best describes it:i.After considering implemented controls, the desired level of the risk of a major cyberattack is lowii.Before considering controls, the level of risk of a major cyberattack is highiii.After considering implementing controls, the level of the risk of a major cyberattack is mediumSelect answer from the options below(i) Target residual risk; (ii) inherent risk; (iii) actual residual risk(i) Target residual risk; (ii) internal control; (iii) inherent risk(i) Target residual risk; (ii) actual residual risk; (iii) assessed risk(i) Internal control; (ii) inherent risk; (iii) target residual risk

Which of the following statements concerning control risk is correct?Select one:a.When control risk is at the maximum level, an auditor is required to document the basis for that assessment.b.Control risk may be assessed sufficiently low to eliminate substantive testing for significant transaction classes.c.When assessing control risk, an auditor should not consider evidence obtained in prior audits about the operation of controls.d.Assessing control risk and obtaining an understanding of an entity's internal control may be performed concurrently.