Which of the Following Circumstances Would Not Warrant Special Risk

question 20

Multiple Choice

Which of the following circumstances would not warrant special risk assessment attention?

• A) New client personnel.
• B) New product lines.
• C) New information systems.
• D) New audit firm.

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Definitions:

Adjusting Entries

Journal records created during the final part of an accounting period for the purpose of attributing revenues and expenses to the timeframe in which they actually took place.

Correct Balances

Accurate financial figures in accounting records that match the real-world values of assets, liabilities, and equity.

Accounting Period

A specific time frame for which financial records are tracked and reported, typically a year or quarter.

Accrual Basis

An accounting method where revenue is recorded when earned and expenses are recorded when incurred, regardless of when cash transactions occur.