What Type of Risk Is Intentional Failure by Management to Accurately

question 43

Multiple Choice

What type of risk is intentional failure by management to accurately disclose violations of debt covenants?

• A)Inherent risk.
• B)Fraud risk.
• C)Control risk.
• D)Detection risk.

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Definitions:

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, indicating its usual increase direction.

Account Nature

Refers to the classification of an account as either an asset, liability, equity, revenue, or expense, which dictates its role and presentation in financial statements.

Normal Balance

The side of an account on which increases are recorded, typically the debit side for assets and expenses, and the credit side for liabilities, equity, and revenue.

Account Nature

The characteristic of an account that classifies it as an asset, liability, equity, revenue, or expense.