Jamika and Bruce are staff associates working on the audit of Jackson Enterprises, a national distributor...

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Jamika and Bruce are staff associates working on the audit of Jackson Enterprises, a national distributor of plastics. Jamika recently overhead one of the audit managers discussing control risk with the partner assigned to the engagement, and has asked Steve if he knows what this means. What is Steve's best response to this question? Control risk relates to the risk that the auditing firm, having performed all necessary audit procedures, renders an inaccurate opinion on the financial statements. Control risk relates to the risk that the client's system of internal control may not prevent or detect errors from occurring in the clients operations and financial statements. Control risk speaks to the threat of future litigation arising from prior financial statements audits by the auditing firm. None of these answer choices are correct. Jamika and Bruce are staff associates working on the audit of Jackson Enterprises, a national distributor of plastics. Jamika recently overhead one of the audit managers discussing control risk with the partner assigned to the engagement, and has asked Steve if he knows what this means. What is Steve's best response to this question? Control risk relates to the risk that the auditing firm, having performed all necessary audit procedures, renders an inaccurate opinion on the financial statements. Control risk relates to the risk that the client's system of internal control may not prevent or detect errors from occurring in the clients operations and financial statements. Control risk speaks to the threat of future litigation arising from prior financial statements audits by the auditing firm. None of these answer choices are correct.