What Is the Term Used to Identify the Risk That

question 31

Multiple Choice

What is the term used to identify the risk that the client's financial statements may be materially false and misleading?

• A)Business risk.
• B)Information risk.
• C)Client risk.
• D)Risk assessment.

---

Definitions:

Sole Proprietorship

A type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.

Double Taxation

A taxation principle referring to income taxes paid twice on the same source of earned income, typically seen in corporate dividends taxed both at the corporate level and again at the individual level.

Corporation

A legal entity that is separate and distinct from its owners, capable of conducting business, entering into contracts, and owning assets.

Transfer Ownership

The act of moving legal title and rights from one entity or person to another.