The likelihood that errors or fraud may occur is referred to as:
A)Risk
B)Materiality
C)Control tests
D)Sampling

Question

Quizplus · Accepted Answer

Risk refers to the likelihood that errors or fraud may occur. Materiality refers to the significance of an error or fraud, control tests refer to procedures designed to test the effectiveness of internal controls, and sampling refers to the process of selecting a representative portion of a population for testing.

The Likelihood That Errors or Fraud May Occur Is Referred