Which One of the Following Is Not an Inherent Risk

question 21

Multiple Choice

Which one of the following is not an inherent risk factor in the financial statements?

• A) The company made 3 acquistions during the year in different lines of business.
• B) The company's industry is experiencing downward pricing pressure for its goods and services.
• C) The company's inventory, because of multiple locations, is difficult to count.
• D) The company has hired 3 different chief accounting officers for the year.

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Definitions:

Proposition

A comment that denotes a judgment or viewpoint.

Consequent

In logic, this refers to the outcome in a conditional statement, which follows from its condition (if-then statement).

Proposition

A proposition is a statement or assertion that expresses a judgment or opinion.

Syllogism

A form of deductive reasoning that arrives at a conclusion based on two premises, where each shares a common term.