What Term Is Used to Refer to the Probability That

question 60

Multiple Choice

What term is used to refer to the probability that an accounting error or irregularity is detected and reported?

• A) Accounting risk
• B) Audit risk
• C) Audit quality
• D) Transaction risk

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Definitions:

Liable

The condition of being legally accountable for specific actions or responsibilities, particularly in relation to debts or legal duties.

Oral Stop-Payment Order

A verbal instruction to a financial institution to cancel the payment process of a check or transaction.

Good

An item or product that is manufactured or produced for sale, often tangible, and exchanged in the marketplace.

Deposit Agreement

A legal arrangement wherein one party places an asset under the control of another party, often a financial institution, with specific terms governing its management and disposal.