Auditing Principles and Practices __ is the way of presenting the financial data in a much better position than the original A. Falsification of manipulation of accounts B. Window dressing D. Misappropriation of goods E. None of the above C. Errors of commission 15. __ is the risk that occurs when a material misstatement in an assertion will not be prevented or detected on a timely basis by the company's internal control? A. Inherent risk D. Internal risk B. Detection risk E. None of the above C. Control risk

* **Question 1:** The correct answer is **B. Window dressing**. Window dressing refers to the manipulation of financial figures to make a company's performance appear better than it actually is. While it doesn't necessarily involve outright falsification (A), it presents a biased view. Errors of commission (C) are unintentional mistakes, and misappropriation of goods (D) is theft, neither of which directly relates to the presentation of financial data.<br /><br />* **Question 2:** The correct answer is **C. Control risk**. Control risk is the risk that a company's internal controls will not prevent or detect a material misstatement in a timely manner. Inherent risk (A) is the risk of misstatement before considering internal controls. Detection risk (B) is the risk that the auditor's procedures will not detect a material misstatement. Internal risk (D) is not a standard auditing term.<br />