Which of the Following Characteristics of the Client's Management Affects

question 5

Multiple Choice

Which of the following characteristics of the client's management affects the risk of material misstatements in the financial report?

• A) Ability to respond to risk
• B) Philosophy and operating style
• C) Ability to identify risk
• D) All three of the above

---

Definitions:

Panic Disorder

A mental health condition characterized by sudden episodes of intense fear or discomfort, known as panic attacks, along with ongoing worry about having more attacks.

Obsessive-compulsive Disorder

A mental disorder characterized by unwanted, recurring thoughts and behaviors that the person feels compelled to perform.

Dissociative Disorder

A type of psychological disorder characterized by a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.

Somatic Disorder

A category of mental disorders characterized by physical symptoms that mimic physical disease but have no identifiable physical cause, strongly associated with psychological factors.