The Susceptibility of an Assertion to a Material Misstatement, Assuming

question 22

Multiple Choice

The susceptibility of an assertion to a material misstatement, assuming that there are no controls, is:

• A) audit risk.
• B) control risk.
• C) analytical procedures risk.
• D) inherent risk.
• E) tests of details risk.

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Definitions:

Check Register

A record of transactions in a checking account, including deposits, checks, and withdrawals.

Transactions

Financial events that affect an entity's financial statements, involving transfers or exchanges of value between parties.

Undeposited Funds

An account used in accounting to hold funds that have been received but not yet deposited into a bank account.

Customer Payments

The transactions where a customer pays the company for goods or services provided.