Which of the Following Factors Influences the Risk of Material

question 62

Short Answer

Which of the following factors influences the risk of material misstatement? $$\begin{array} { c c c } &\text { Susceptibility of the } & \text { Nature, timing, and } \\&\text { account balance to } & \text { extent of further audit }\\&\text { misstatement} & \text { procedures }\\\text { A. } & \text { Yes } & \text { No } \\\text { B. } & \text { Yes } & \text { Yes } \\\text { C. } &\text { No } & \text { Yes } \\\text { D } & \text { No } & \text { No }\end{array}$$

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Definitions:

Build Trust

Developing reliable, truth-based relationships between individuals or groups through consistent actions, communications, and demonstrated integrity.

Representational Gap

The discrepancy between the intended message or representation and how it is perceived or interpreted by others, often leading to misunderstandings or communication breakdowns.

Mental Models

Internal representations of external reality that people use to understand and interact with the world around them.

Team's Problem

An issue or obstacle that a group must collectively address and resolve in order to achieve its objectives.