Answer (A) is correct . Control risk is one of the elements in the audit risk model. It is the risk that a material misstatement that could occur in an assertion will not be prevented or detected on a timely basis by the entity’s internal control. Hence, control risk is a function of the effectiveness of internal control, not a component thereof.
Answer (B) is incorrect because Monitoring is a component of internal control.
Answer (C) is incorrect because Information and communication are components of internal control.
Answer (D) is incorrect because The control environment is a component of internal control.
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