Some account balances, such as those for foreign currency transactions, are the results of complex calculations.The susceptibility to material misstatements in these types of accounts is defined as:
A)detection risk.
B)audit risk.
C)sampling risk.
D)inherent risk.

Question

Quizplus · Accepted Answer

The susceptibility to material misstatements in complex account balances such as foreign currency transactions is inherent risk. This type of risk pertains to the vulnerability of the account balance to misstatements before considering the client's internal controls or the auditor's procedures.

Some Account Balances, Such as Those for Foreign Currency Transactions