The Possibility That Fraud Has Resulted in Intentional Misstatement in the Financial

question 58

Multiple Choice

The possibility that fraud has resulted in intentional misstatement in the financial statements is known as ________.

• A)audit risk
• B)control risk
• C)detection risk
• D)fraud risk

---

Definitions:

Transactions

The exchange of goods, services, or funds between two or more parties in business.

Transactions

Financial activities or events that result in the exchange of assets, liabilities, or equity between entities.

Sole Stockholder

An individual or entity that owns 100% of a corporation’s stock, holding complete control over the firm.

Money Units

A standard unit of measure for accounting transactions, typically representing the currency in which a financial transaction is recorded.