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:

Conscientiousness

One of the five major personality traits, characterized by high levels of thoughtfulness, good impulse control, and goal-directed behaviors.

Negative Emotions

Negative emotions are feelings that are perceived as unpleasant or harmful to the emotional well-being of an individual, such as sadness, anger, or fear.

Forgives

The act of letting go of resentment, anger, or claims against someone who has wronged you.

Openness to Experience

One of the five major personality traits, characterized by a willingness to try new things, creativity, and a preference for novel experiences.