Multiple Choice
A significant risk is an identified and assessed risk of material misstatement that, in the auditor's judgment, requires special audit consideration.Which of the following would be classified as a significant risk?
A) A risk related to a significant economic or accounting development.
B) A risk related to transactions for a simple operating lease, like you sign when you rent an apartment.
C) A risk that does not involve a related party transaction.
D) A risk related to a transaction that involves a recording error, but was not intentional, like a fraud.
Correct Answer:
Verified
Correct Answer:
Verified
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