Which of the Following Factors Influence the Risk of Material

question 11

Multiple Choice

Which of the following factors influence the risk of material misstatement?

• A) The business risks.
• B) Management incentives.
• C) IT risks.
• D) All of the above.

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Definitions:

Form 8949

A tax form used by the IRS to report sales and other dispositions of capital assets.

Outstanding Receivables

are amounts owed to a business by its customers for goods or services delivered but not yet paid for.

FMV

Fair Market Value; the price that property would sell for on the open market between a willing buyer and a willing seller.

Basis

In tax terms, it refers to the amount of a taxpayer's investment in property for tax purposes, used to calculate gain or loss on the sale or disposition of the property.