Client Risk as Defined in the Text Is

question 28

Multiple Choice

Client risk as defined in the text is

• A) The auditor's risk of loss from events arising in connection with financial statements audited and reported upon.
• B) The overall risk of material misstatement.
• C) The risk that audit procedures will fail to detect material misstatements.
• D) The risk of the client's financial failure.

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Definitions:

Neuroticism

A personality trait involving a long-term tendency to be in a negative emotional state. People high in neuroticism are more likely to experience feelings of anxiety, sadness, and moodiness.

Agreeableness

A personality trait characterized by kindness, empathy, trustworthiness, and cooperation.

Extraversion

A personality trait characterized by outgoingness, sociability, and high energy levels, contrasting with introversion.