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

Question

Quizplus · Accepted Answer

Information risk refers to the risk that the financial statements may be materially false and misleading. Business risk refers to the risk that a company will not achieve its financial goals. Client risk refers to the risk associated with a specific client's ability to pay for services rendered. Risk assessment is the process of identifying, analyzing and evaluating risks.

The Risk That Financial Statements May Be Materially False and Misleading