When an Entity Moves into a Significant New Line of Business,all

question 20

Multiple Choice

When an entity moves into a significant new line of business,all of the following increase except:

• A) Client risk.
• B) Acceptable audit risk.
• C) Risk of material misstatement.
• D) Entity business risk.

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Definitions:

Factitious Disorder

A psychological disorder in which a person acts as if they have an illness by deliberately producing, feigning, or exaggerating symptoms, motivated by a desire for attention or sympathy.

Multiple Hospitalizations

The act of being admitted to the hospital for treatment on several occasions.

Medical Procedures

Refers to the techniques and actions performed by healthcare professionals to diagnose, treat, or prevent disease.

Financial Benefit

An advantage or profit gained from investments, employment, or other financial activities.