Which Item Is Correct Concerning the Risk of Material Misstatement

question 82

Multiple Choice

Which item is correct concerning the risk of material misstatement?

• A)Risk of material misstatement arises because audit procedures have been misapplied.
• B)Risk of material misstatement can be controlled and changed by the auditor.
• C)Risk of material misstatement must be assessed in non-quantitative terms.
• D)Risk of material misstatement is controllable by the client.

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Definitions:

Troposphere

The lowest layer of Earth's atmosphere, where most weather phenomena occur.

Nitrous Oxide

A powerful greenhouse gas and ozone-depleting substance, emitted through agricultural practices, fossil fuel combustion, and industrial activities.

Sulphur Dioxide

A colorless gas with a sharp, choking smell, used in industry and produced by volcanoes, known for its role in acid rain and as a pollutant affecting respiratory health.

Greenhouse Gas Emitter

Any entity, such as a company, vehicle, or process, that releases greenhouse gases into the atmosphere, contributing to global warming and climate change.