Audit Risk Is

question 32

Multiple Choice

Audit risk is

• A)the risk that material misstatements occur in the financial statements and are detected by the auditor
• B)the risk that misstatements occur in the financial statements and are not detected by the auditor
• C)the risk that material misstatements occur in the financial statements
• D)the risk that material misstatements occur in the financial statements and are not detected by the auditor

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Definitions:

Greed

An excessive desire for more of something than is needed, often related to wealth, power, or food.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for action by triggering the fight-or-flight response.

Emotionally Stressful

Situations or events that cause significant emotional strain and tension.

Central Nervous System

The section of the nervous system that includes the brain and spinal cord, tasked with processing information from the senses and overseeing the functions of the body.