The risk that financial statements may be materially false and misleading is called
A)information risk.
B)client risk.
C)business risk.
D)assessment risk.

Question

Quizplus · Accepted Answer

Information risk refers to the possibility that information used to make business decisions is inaccurate or misleading. In the context of financial statements, information risk arises due to the risk of material misstatements or errors.

The Risk That Financial Statements May Be Materially False and Misleading