When Classifying Risks, Significant Consideration Is Not Given to Whether

question 56

Multiple Choice

When classifying risks, significant consideration is not given to whether the risk

• A) is related to significant economic or accounting developments.
• B) involves simple transactions.
• C) involves significant related party transactions.
• D) involves fraud.

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Definitions:

Triggers

Conditions or events that initiate a specific action or process.

Modify or Waive

The act of making changes to the conditions or requirements of an agreement, or choosing not to enforce them.

Immediate Repayment

The requirement to pay back borrowed funds or settle a debt without delay, often immediately after the funds are disbursed.

Financial Reporting Flexibility

The discretion allowed to managers in choosing how to report financial performance and position, within the bounds of accounting standards and principles.