Which of the Following Is True of the Influence of Significant

question 20

Multiple Choice

Which of the following is true of the influence of significant accounts and classes of transactions on inherent risk?

• A)When determination of account balance is objective, the inherent risk is low.
• B)When the transactions are routine and relatively homogenous, the inherent risk is high.
• C)When the account has high volume of transactions, the inherent risk is low.
• D)When the determination of an account balance is subjective, the inherent risk is low.

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Definitions:

Dried Up Lake Bed

The base of a former lake that has lost its water content and become dry, often leaving behind salt flats, minerals, or arid land.

Clastic Sediments

Sediments made up of fragments, or clasts, of pre-existing minerals and rock that have been transported and deposited by wind, water, or ice.

Amount Of Sorting

The degree to which sediment particles are of uniform size, which influences the texture and porosity of sedimentary rocks.

Climate

A pattern of weather conditions in an area over a long period of time.