Which of the Following Is Not an Important Consideration in an Auditor's

question 52

Multiple Choice

Which of the following is not an important consideration in an auditor's evaluation of an entity's business risk?

• A)The specific business risks an entity faces that may result in financial statement errors and fraud.
• B)Business risk factors that impact the ability of the entity to be profitable and survive.
• C)Audit standards include many entity business risk factors that identify circumstances that increase the likelihood of material misstatements.
• D)Audit standards require the auditor to evaluate the entity's business risk in order to provide suggestions to improve the entity's profitability.

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Definitions:

Ethics of Liberty

Philosophical principles that emphasize personal freedom and the moral importance of respecting individual rights.

Modern-Day Slavery

Forms of coercion, exploitation, or forced labor that exist in the current era, often hidden within global supply chains or industries.

Jungle Unionism

A term that may refer to aggressive, unregulated union activities or tactics, often implying a lawless or survival-of-the-fittest approach. Since this term is less recognized and might be considered outdated or pejorative, a direct contemporary equivalent might not exist, but it often denotes aggressive labor activism.

Insurance Company

A business that provides coverage, in the form of compensation resulting from loss, damages, injury, treatment, or hardship in exchange for premium payments.