Which of the following factors influence the risk of material misstatement?
A)Business risks.
B)Management incentives.
C)IT risks.
D)All of the above.

Question

Quizplus · Accepted Answer

All of the above factors can influence the risk of material misstatement. Business risks refer to external factors such as economic conditions, industry competition, and changes in laws and regulations that can impact the entity's operations and financial performance. Management incentives can create pressure to manipulate financial results or misstate financial information. IT risks relate to the reliability of information technology systems and controls that support financial reporting processes. Therefore, all these factors must be considered when assessing the risk of material misstatement.

Which of the Following Factors Influence the Risk of Material