The Risk of Material Misstatement Due to Fraud Relating to Revenue

question 96

Multiple Choice

The risk of material misstatement due to fraud relating to revenue recognition should be

• A)approached in a manner that is identical to control risk assessment.
• B)given lower priority to the risk of embezzlement.
• C)ordinarily presumed by the auditor.
• D)assumed to have been considered by the audit committee.

---

Definitions:

Literature Review

A thorough search through previously published studies relevant to a particular topic.

Dissertation

An extensive piece of writing on a specific topic, usually submitted as part of a doctoral degree.

Operational Definition

A clear, precise description of a variable or condition in terms of the specific operation or procedure used to determine its presence or quantity.

Spurious Correlation

The appearance of causation produced by an intervening variable.