Which of the Following Statements Is True

question 58

Multiple Choice

Which of the following statements is true?

• A)Inherent risk is the susceptibility of an assertion to material misstatement before consideration of any related controls.
• B)Inherent risk assessment is affected by internal factors but not external factors.
• C)It is possible to eliminate audit risk.
• D)During the risk assessment phase, auditors will perform audit procedures to identify transactions and accounts where the risk of material misstatement is lowest.

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Definitions:

Team Member

An individual belonging to a group working together to achieve common goals or complete tasks.

Holistic Approach

A comprehensive method considering all aspects of an individual's well-being, including physical, mental, and social factors.

Powerful Professions

Occupations that hold significant influence, authority, or control within society, often affecting major decisions and policies.

Overrepresented

Refers to a group or category that is disproportionately large or appears in greater numbers than would be expected within a given context.