Most Auditors Assess the Risk of Material Misstatement as High

Multiple Choice

Most auditors assess the risk of material misstatement as high for related parties and related-party transactions because

A) of the unique classification of related-party transactions required on the balance sheet.
B) of the lack of independence between the parties.
C) of the unique classification of related-party transactions required on the income statement.
D) it is required by generally accepted accounting principles.