Which of the Following Statements Concerning Accounting Risk (AccR)is FALSE

question 36

Multiple Choice

Which of the following statements concerning accounting risk (AccR) is FALSE?

• A)Estimation of AccR requires knowledge of the auditee's business and industry.
• B)AccR is largely dependent on factors outside the control of both the auditor and auditee.
• C)AccR can best be estimated using the uniform distribution assumption to calculate the reasonable range.
• D)AccR and Audit Risk (AuR)are largely dependent on one another.

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Definitions:

Economic Integration

A process whereby countries reduce trade barriers and coordinate monetary and fiscal policies to create a seamless economic region or market.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, often resulting in increased connectivity and interdependence among global economies.

Financialization

The increasing influence of financial markets, financial motives, financial institutions, and financial elites on the economy and economic policy.

Political Systems

The framework of formal legal institutions that constitute a government or a state, determining how power is acquired, communicated, and exercised.