Inherent risk Select one: a. All of the others are correct. b. Involves auditors attaining sufficient background information on the client to assess the risk of material misstatement of the financial statements. c. Incorporates the possibility of material misstatement. d. Relates to the business the organization is involved in and the environment

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Inherent risk
Select one:
a. All of the others are correct.
b. Involves auditors attaining sufficient background information on the client to assess the risk of material
misstatement of the financial statements.
c. Incorporates the possibility of material misstatement.
d. Relates to the business the organization is involved in and the environment
in which it operates.
Transcribed Image Text:Inherent risk Select one: a. All of the others are correct. b. Involves auditors attaining sufficient background information on the client to assess the risk of material misstatement of the financial statements. c. Incorporates the possibility of material misstatement. d. Relates to the business the organization is involved in and the environment in which it operates.
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