Companies of all sizes try to reduce business risks, create disaster recovery plans, and also purchase insurance for what they cannot completely control. Therefore, the business risk is the risk that: Select one: a. The auditor will give an inappropriate auditor’s opinion when the financial report is materially misstated b. The entity’s business objectives will not be attained due to the external and internal environment affecting the entity and the industry in which it operates. c. An error will occur given the environmental characteristics of the account balance. d. The auditor will be exposed to loss to their professional practice from litigation or adverse publicity arising in connection with an audit.
Companies of all sizes try to reduce business risks, create disaster recovery plans, and also purchase insurance for what they cannot completely control. Therefore, the business risk is the risk that: Select one: a. The auditor will give an inappropriate auditor’s opinion when the financial report is materially misstated b. The entity’s business objectives will not be attained due to the external and internal environment affecting the entity and the industry in which it operates. c. An error will occur given the environmental characteristics of the account balance. d. The auditor will be exposed to loss to their professional practice from litigation or adverse publicity arising in connection with an audit.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter2: The Auditor’s Responsibilities Regarding Fraud And Mechanisms To Address Fraud: Regulation And Corporate Governance
Section: Chapter Questions
Problem 16CYBK
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Question
Companies of all sizes try to reduce business risks, create disaster recovery plans, and also purchase insurance for what they cannot completely control. Therefore, the business risk is the risk that:
Select one:
a.
The auditor will give an inappropriate auditor’s opinion when the financial report is materially misstated
The auditor will give an inappropriate auditor’s opinion when the financial report is materially misstated
b.
The entity’s business objectives will not be attained due to the external and internal environment affecting the entity and the industry in which it operates.
The entity’s business objectives will not be attained due to the external and internal environment affecting the entity and the industry in which it operates.
c.
| An error will occur given the environmental characteristics of the account balance. |
d.
The auditor will be exposed to loss to their professional practice from litigation or adverse publicity arising in connection with an audit.
The auditor will be exposed to loss to their professional practice from litigation or adverse publicity arising in connection with an audit.
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