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

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Definitions:

Mores

Norms that carry great moral significance, are closely related to the core values of a cultural group, and often involve severe repercussions for violators.

Law

A system of rules created and enforced through social or governmental institutions to regulate behavior, with its precise definition being a matter of longstanding debate among specialists.

Informal Norms

Unwritten rules and expectations that regulate the behavior of individuals within a society or group, without formal legal enforcement.

Formal Norms

Explicitly defined rules and regulations that guide behavior and maintain social order within a society.