Which of the following types of risks assumes an absence of
compensating controls in the area being reviewed?
A. Control risk
B. Detection risk
C. Inherent risk
D. Sampling risk
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Answer: C
The risk that an error exists that could be material or
significant when combined with other errors encountered
during the audit, there being no related compensating
controls, is the inherent risk. Control risk is the risk
that a material error exists that will not be prevented or
detected on a timely basis by the system of internal
controls. Detection risk is the risk when an IS auditor uses
an inadequate test procedure and concludes that material
errors do not exist, when they do. Sampling risk is the risk
that incorrect assumptions are made about the
characteristics of a population from which a sample is taken.
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