Audit Risk Involves the Risk That

question 47

Multiple Choice

Audit risk involves the risk that:

• A) The financial statements contain a misstatement.
• B) The ICFR fails to report material internal control weaknesses and the audit report also fails to mention this fact.
• C) The client lied to management.
• D) All of the above.

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Definitions:

Acceptance

The agreement to the terms of an offer, thereby creating a contract.

Swimming Scholarship

A financial award given to a student based on their excellence in swimming, often to support their education while they compete in the sport.

Revocation

The act of withdrawing, cancelling, or repealing a law, order, or agreement.

Acceptance

In contract law, the affirmative response by an offeree to an offer, leading to the formation of a contract.