Jibbery Company Has Numerous Transactions with Related Parties

question 3

Multiple Choice

Jibbery Company has numerous transactions with related parties.For example,it has borrowed money from shareholders,purchases raw materials from a subsidiary company,and sells finished goods to its parent company.Which of the following describes one of the impacts of these transactions on risk assessment ?

• A)inherent risk would be set as low
• B)inherent risk would be set as high
• C)control risk would be set as low
• D)audit risk would be decreased

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Definitions:

Coleman

Refers to James S. Coleman, an American sociologist known for his work in educational sociology, including the influential "Coleman Report" on educational inequality.

IQ Scores

A quantified measure of a person's cognitive abilities as compared to the population, typically represented by a score that is intended to serve as a measure of an individual's intellectual capabilities.

Relative Standing

The position or ranking of an individual or object in relation to others within a social or hierarchical structure.

Age Group

A categorization of humans based on their age, often used in studies and surveys to differentiate between populations.