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What is control risk and what is the role in audit planning?

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What is control risk and what is the role of control risk assessment in audit planning?

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Solution Summary

The solution discusses the evaluation of control risk as part of the review of internal controls. The solution expands the definition of control risk to encompass external as well as internal risk assessment.

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Control normally refers to internal control, and Sarbanes Oxley requires that a study of internal control be conducted as part of a financial statement audit process. The need for control and accountability is part of corporate governance, and begins at the top with the Board of Directors and the Audit Committee.

Part of the study of internal ...

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