The Risk of Material Misstatement Refers to Which of the Following

question 32

Multiple Choice

The risk of material misstatement refers to which of the following?

• A)Inherent risk.
• B)Control risk and acceptable audit risk.
• C)The combination of inherent risk and control risk.
• D)Inherent risk and audit risk.

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Definitions:

Affiliation

Describes a connection or association with a group, organization, or set of beliefs.

Intrinsic Motivation

The drive to engage in activities for their own sake, due to personal interest or enjoyment, rather than for external rewards.

Fulfilling Job

A job that provides satisfaction, a sense of achievement, and a feeling of making a meaningful contribution.

Drive Theories

Psychological theories that explain motivation as being driven by the need to fulfill basic biological needs, such as hunger or thirst.