Which of These Is One of the Three Components of Audit

question 3

Multiple Choice

Which of these is one of the three components of audit risk?

• A) deception risk.
• B) control risk.
• C) rejection risk.
• D) acceptance risk.

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Definitions:

Rental Properties

Real estate properties rented out to tenants, generating income for the owner which must be reported for tax purposes.

Schedule E

Schedule E is a tax form used by landlords, S corporation shareholders, and partners in partnerships to report their share of income, losses, and deductions.

Capital Improvements

Expenditures creating a benefit to a property over its existing state, often enhancing its value or extending its life.

Schedule K-1

A tax document used to report the income, deductions, and credits of a partnership or S corporation to its partners or shareholders.