For each illustration, select the component of audit risk that is most directly illustrated. The com

used once, more than once, or not at all.

Components of audit risk:

a$.$ Inherent risk

b$.$ Control risk

c$.$ Detection risk.

$1.$ A client fails to discover employee fraud on a timely basis because bank accounts are not rec

$2.$ Cash is more susceptible to theft than an inventory of coal.

$3.$ Confirmation of receivables by an auditor fails to detect a material misstatement.

$4.$ Disbursements have occurred without proper approval.

$5.$ There is inadequate segregation of duties.

$6.$ A necessary substantive audit procedure is omitted.

$7.$ Notes receivable are susceptible to material misstatement, assuming there are no related inte

$8.$ Technological developments make a major product obsolete.

$9.$ The client is very close to violating debt covenants.

$10.$ XYZ Company, a client, lacks sufficient working capital to continue operations.