Which of the Following Items Is Not an Important Consideration

question 18

Multiple Choice

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

• A)The specific business risks that an entity faces may result in financial report errors and fraud.
• B)Business risk factors affect the ability of an entity to be profitable and survive.
• C)Auditing standards include many entity business risk factors that identify circumstances that increase the likelihood of material misstatements.
• D)Auditing 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:

Rapes

A heinous crime involving sexual intercourse or other forms of sexual penetration carried out against a person without their consent.

Committed

Describes a state of being dedicated or devoted to a cause, activity, or goal.

Man

An adult human male.

Relatively Common

Describes something that occurs frequently or is found widely in a particular context or environment, but not necessarily universally.