Which of the Following Concepts Is Least Related to the Risk

question 78

Multiple Choice

Which of the following concepts is least related to the risk of material misstatement?

• A)Control risk.
• B)Detection risk.
• C)Inherent risk.
• D)Materiality.

---

Definitions:

Principal

In law, the person who authorizes an agent to act on their behalf; in finance, the original amount of money invested or loaned.

Vicarious Liability

The liability or responsibility imposed on a person, a party, or an organization for damages caused by another; most commonly used in relation to employment, with the employer held vicariously liable for damages caused by its employees.

Principal-Employer

The party in a contractual relationship who has the right to control the work of the employee or agent and is responsible for their actions.

Agent-Employee

An individual who performs tasks on behalf of another, the principal, in an employment context, with both agency and employment law aspects governing the relationship.