The auditor of PAC Pvt Ltd., a pickle manufacturing company, notices that the company is expanding its operations into North India States in…
CA Intermediate · Auditing and Ethics · RTP · January 2026
The auditor of PAC Pvt Ltd., a pickle manufacturing company, notices that the company is expanding its operations into North India States in Financial Year 2024-25, but the related internal control system remains the same to handle the increased volume of transactions and consequently auditor concludes that material misstatements would not be prevented, or detected and corrected by the entity's internal control. Type of risk involved in this situation is:
Suggested Answer and Working Notes:
Correct Answer: Option (B)
Control Risk.
Topics: Risk Assessment and Internal Control
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