At the assertion level, the risk of material misstatement refers to risks that affect classes of ________.
A)account balances, only
B)transactions and disclosures, only
C)disclosures, only
D)transactions, account balances, and disclosures

Question

Quizplus · Accepted Answer

The risk of material misstatement affects not only transactions and disclosures but also account balances. Therefore, the best choice is D, which includes all three categories.

At the Assertion Level, the Risk of Material Misstatement Refers