Which of the Following Is Not a Primary Consideration When

question 20

Multiple Choice

Which of the following is not a primary consideration when assessing inherent risk?

• A) nature of client's business
• B) existence of related parties
• C) degree of separation of duties
• D) susceptibility to defalcation

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Definitions:

Interest Earnings

Income received from investments in interest-bearing financial instruments, such as savings accounts, CDs, or bonds.

Compounded Semi-Annually

Interest calculation method where interest is added to the principal sum twice a year, leading to interest earning interest over time.

Annual Scholarship

A financial award given to students on a yearly basis to support their education.

Investment

is the allocation of resources, usually money, with the expectation of generating an income or profit.