Which of the Following Would Not Increase the Risks of Material

question 11

Multiple Choice

Which of the following would not increase the risks of material misstatement at the overall financial statement level?

• A) effective oversight by the board of directors
• B) deficiencies in management's integrity
• C) inadequate accounting systems
• D) all of the above

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Definitions:

Prejudice

Preconceived opinion or judgment without adequate information or experience, often leading to biased attitudes towards individuals or groups.

Stigma

A mark of disgrace associated with a particular circumstance, quality, or person that can lead to discrimination or social rejection.

Conscientiousness

A personality trait characterized by diligence, carefulness, thoroughness, self-discipline, and the desire to do a task well.

Responsible

Being accountable for something within one's power, control, or management.