The inherent risk that accounts payable may be omitted or otherwise understated typically is
A)Low.
B)High.
C)Moderate.
D)Indeterminate.

Question

Quizplus · Accepted Answer

The risk of omitting or understating accounts payable is high as it can result in overstating net income and assets on the balance sheet. Failure to accurately record accounts payable can also result in inaccurate financial statements and mislead stakeholders.

The Inherent Risk That Accounts Payable May Be Omitted or Otherwise