Greater volatility in the business environment raises the amount of measurement uncertainty associated with predicting future-event amounts.Such greater uncertainty leads to an increase in which type of risk?
A)Accounting risk.
B)Detection Risk.
C)Business Risk.
D)Control Risk.

Question

Quizplus · Accepted Answer

Greater volatility in the business environment increases the uncertainty in financial measurements and predictions, which raises accounting risk, as it involves the risk of errors in financial reporting due to uncertain estimates.

Greater Volatility in the Business Environment Raises the Amount of Measurement