When classifying risks as being significant consideration is not given to whether the risk:
A)Involves significant related party transactions.
B)Is related to significant economic or accounting developments.
C)Involves simple transactions.
D)Involves fraud.

Question

Quizplus · Accepted Answer

Risks involving simple transactions are generally not considered significant because they are less likely to have a material impact on the financial statements compared to risks associated with complex transactions, significant related party transactions, significant economic or accounting developments, or fraud.

When Classifying Risks as Being Significant Consideration Is Not Given