What is the term used to identify the risk that the client's financial statements may be materially false and misleading?
A)Business risk.
B)Information risk.
C)Client risk.
D)Risk assessment.

Question

Quizplus · Accepted Answer

Information risk refers to the risk that the information provided by the client may not be reliable and accurate, leading to financial statements that are materially false and misleading. Business risk refers to the risk inherent to the client's industry and operations. Client risk refers to the risk associated with a specific client, such as their reputation or financial stability. Risk assessment is a general term used to describe the process of identifying and evaluating risks.

What Is the Term Used to Identify the Risk That