Inherent Risk

question 103

Multiple Choice

Inherent risk

• A)exists because all control structures are flawed in some ways.
• B)is the likelihood that material misstatements exist in the financial statements of the firm.
• C)is associated with the unique characteristics of the business or industry of the client.
• D)is the likelihood that the auditor will not find material misstatements.

---

Definitions:

Bullet-Shaped

Describes objects or entities having a rounded, tapered form at one end, resembling the shape of a bullet, often used to describe certain types of viruses or projectiles.

Body Temperature

The measure of the body's ability to generate and get rid of heat, crucial for proper physiological function.

Prescription Drug

Medication that legally requires a medical prescription to be dispensed, as opposed to over-the-counter drugs.