During Financial Statement Audits,auditors Seek to Restrict Which Type of Risk

question 63

Multiple Choice

During financial statement audits,auditors seek to restrict which type of risk?

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

---

Definitions:

Parent Company

A corporation that owns enough voting stock in another firm to control management and operations.

Held-to-Maturity Securities

Investment securities that a company has the intent and ability to hold until a specified maturity date.

Interest Revenue

Income earned from lending investments or depositing funds in interest-bearing accounts, often reported on the income statement.

Held-to-maturity Securities

Held-to-maturity Securities are debt securities that an investor intends and is able to hold until their maturity date, recorded at amortized cost in financial statements.