The Risk of Material Misstatement Due to Fraud Relating to Revenue

question 11

Multiple Choice

The risk of material misstatement due to fraud relating to revenue recognition should be

• A)approached in a manner that is identical to control risk assessment.
• B)given lower priority to the risk of embezzlement.
• C)ordinarily presumed by the auditor.
• D)assumed to have been considered by the FASB.

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Definitions:

Age

The length of time that a person or thing has existed, typically measured in years.

Research

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Shy

A temperament or personality trait characterized by feelings of nervousness or discomfort in social situations.

Inhibited

Being restrained or held back in actions, thoughts, or feelings, often due to anxiety or social norms.