A Well-Designed System of Management Risk Assessment Is Likely to Help

question 57

Multiple Choice

A well-designed system of management risk assessment is likely to help management identify the risks:

• A) relevant to the preparation of appropriate financial statements.
• B) of being over-audited.
• C) of ineffective audit procedures.
• D) of making a loss for the year.

---

Definitions:

Germany

A country in Central Europe known for its rich history, cultural heritage, and as a major economic power.

Psychodynamic

An approach in psychology that emphasizes systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Sociocultural

Pertaining to the influence of social and cultural factors on an individual's behavior and mental processes.

Biological

Pertains to the science of life or living matter in all its forms and phenomena, especially with reference to origin, growth, reproduction, structure, and behavior.