Which of the Below Is an Example of an Inherent

question 56

Multiple Choice

Which of the below is an example of an inherent risk:

• A) the risk that the economy will sink into recession.
• B) the risk that the firm will be a take-over target.
• C) the risk that a particular financial statement account is incorrect.
• D) All of the above.

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Definitions:

Employment Equity Plan

A strategic document outlining specific actions an organization will take to achieve employment equity and fair treatment for all employees.

Commitment

The state or quality of being dedicated to a cause, activity, or job; wholehearted devotion.

Representative Workforce

An employee base that reflects the diversity of the demographic composition of the society it operates in.

Demographic Composition

The statistical characteristics of a population, including aspects such as age, race, gender, and income levels.