1. Controls should be implemented to reduce risk to: A. zero B. the level at which management believes the risk benefit is less than its cost. C. the level of materiality specified by the external...

1. Controls should be implemented to reduce risk to:

A. zero

B. the level at which management believes the risk benefit is less than its cost.

C. the level of materiality specified by the external auditors.

D. the level of materiality specified by the audit committee.

2. Financial risks

A. decrease with time.

B. are independent of time.

C. cannot be controlled.

D. are a function of variability.